Silver prices dip below Rs 60,500/kg as dollar strengthens

Silver prices slipped below Rs 60,500 per kg as the dollar strengthened amid a sluggish trend in industrial metals and gold. The precious metal had mildly dropped 0.16 percent on Tuesday on the COMEX.

Silver extended decline to trade at day’s low since morning, tracking the bearish overseas trend.

The white metal has been trading lower than the 5, 20, 50, 100, and 200-day simple moving averages and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 44.04, indicating a sell in the price.

The semi-precious metal has been weighed down by weakening demand outlook amid a slowdown in manufacturing activity globally and concerns about the health of the Chinese economy.

“LBMA Silver above $22.00 level could see sideways to marginal upside momentum up to $23.10-$24.15 levels. Support is at $21.90-$20.77 levels. MCX Silver December above Rs 60,500 level could see Rs 61,300-62,500 levels. Support is at Rs 60,200-59,500 levels,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

He advised his clients to buy December silver at Rs 60,500 with a stop loss of Rs 60,000 and for a target of Rs 61,500.

Silver holdings in iShares ETF were unchanged at 17,105.10 tonnes. The fund NAV is trading at a premium of 0.49 percent.

The US dollar index was up by 0.69 percent at 94.42 against the major currencies in the afternoon session.

The spot gold-silver ratio was at 78.50 to 1, indicating that gold had outperformed silver.

MCX Bulldesk fell 26 points, or 0.19 percent, to 13,869 at 3.45 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

On MCX, December silver delivery touched an intraday high of Rs 60,790 and a low of Rs 60,330 a kg. In the current series, the metal has touched a low of Rs 58,150 and a high of Rs 74,127.

Silver delivery for the December contract slipped Rs 436, or 0.71 percent, to Rs 60,550 per kg at 3.47 pm with a business turnover of 11,815 lots. The same for March tumbled Rs 594, or 0.97 percent, to Rs 60,860 with a turnover of 1,072 lots.

The value of December and March contracts traded so far is Rs 861.62 crore and Rs 16.66 crore, respectively.

The Silver Mini contract for November edged lower by Rs 424, or 0.64 percent, to Rs 60,800 on a business turnover of 28,542 lots.

At 10:23 (GMT), silver was 1.38 percent down and was quoting at $22.29 an ounce in New York.

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