Silver shines brighter at Rs 64,500 a kg on positive trends in gold

Silver prices soared above Rs 64,500 per kg on October 20, tracking a positive momentum in gold, dollar and weak industrial metals, after a flat start in the moring.

The precious metal has been trading higher than the 5, 20, and 50 days' simple and exponential moving averages but lower than the 100 and 200 days’ SMA and EMA on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 65.99, reflecting a bullish movement in the price.

“Market participants are increasingly expecting the Fed to start tapering its asset purchases soon, as the earnings season has been encouraging so far and recent data showed a solid increase in the US consumer prices," Sriram Iyer, Senior Research Analyst at Reliance Securities, said.

Further dimming the gold’s safe-haven appeal were expectations for solid quarterly earnings, which provided a boost to US equities on Tuesday, he said.

Silver holdings in iShares ETF fell by 129.57 tonnes to 17,095.02 tonnes. The fund NAV is trading at a discount of 0.35 percent.

The US dollar index was modestly up 0.07 percent at 93.79 against the major currencies in the afternoon session.

The spot gold-silver ratio was at 74.25 to 1, indicating that silver had outperformed gold.

MCX Bulldesk advanced 67 points, or 0.47 percent, to 14,268 at 4.27pm. 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 64,826 and a low of Rs 64,386 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 rose Rs 376, or 0.58 percent, to Rs 64,826 per kg at 4.29pm with a business turnover of 9,611 lots. The same for March jumped Rs 372, or 0.57 percent, to Rs 65,360 with a turnover of 2,650 lots.

The value of December and March’s contracts traded, so far, is Rs 741.32 crore and Rs 29.70 crore, respectively.

The Silver Mini contract for November edged higher Rs 367, or 0.57 percent, to Rs 64,961 on a business turnover of 24,784 lots.

At 11.01am GMT, silver was 0.62 percent higher, quoting at $24.03 an ounce in New York.

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