Silver prices climbed near to Rs 73,000 per kg on improving industrial demand outlook, firm gold and dollar weakness. The rebound in the rupee however capped the precious metal upside.
The semi-precious metal has been trading higher than 5, 20, 50, 100 and 200 days’ simple moving averages and exponential moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 61.24, which indicates upbeat movement in the price.
Market participants assess the economic and monetary policy outlook for the US and Europe. However, weighing on price are concerns regarding Chinese demand amid mixed economic data and measures to curb rising raw material prices.
Silver holdings in iShares ETF were unchanged for the fourth day at 17,936.56 tonnes. The fund NAV is trading at a premium of 1.10 percent.
The US dollar index eased to 89.80, down 0.20 percent against rival currencies; whereas US 10-year Treasury yields were up 2 basis points to 1.618 percent.
The spot gold/silver ratio currently stands at 67.63 to 1 indicating that silver has outperformed gold.
MCX Bulldesk jumped 100 points or 0.66 percent, at 15,388 at 15:28. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research at Reliance Securities said, “International silver prices are also trading with small gains on Tuesday early afternoon trade in Asia tracking gains in gold and a weak dollar. Technically, LBMA Silver holds a strong resistance near $28.40-$29.66 levels. Support is at $28.10-$27.60 levels.”
“Technically, MCX Silver July above Rs 72,500 could take prices up to Rs 73,700-74,100 levels. Support is at Rs 72,200-71,600 levels,” Iyer said.
In the futures market, silver for July delivery touched an intraday high of Rs 73,147 and a low of Rs 72,460 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 63,456 and a high of Rs 74,222.
Silver delivery for the July contract soared Rs 933, or 1.30 percent to Rs 72,831 per kg at 15:31 hours with a business turnover of 11,899 lots. The same for the September contract gained Rs 899, or 1.23 percent, to Rs 74,000 per kg with a turnover of 680 lots.
The value of July and September’s contracts traded so far is Rs 1,906.66 crore and Rs 76.86 crore, respectively.
Similarly, the Silver Mini contract for June rose by Rs 843, or 1.17 percent at Rs 72,770 on a business turnover of 13,720 lots.
With gold holding firm, the outlook for silver also remains positive however mixed factors indicate the possibility of correction hence fresh buy should be at corrective dips, said Kotak Securities.
At 1005 (GMT), the precious metal was up 1.08 percent quoting at $28.31 an ounce in New York.
For all commodities-related news, click here
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.