July 24, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Silver prices touch September series low of Rs 66,930/kg; Spot gold/silver ratio at six month-high

The value of September and December’s contracts traded so far is Rs 704.53 crore and Rs 13.36 crore, respectively.

The value of September and December’s contracts traded so far is Rs 704.53 crore and Rs 13.36 crore, respectively.

Silver prices eased on July 20 after touching the September series low of Rs 66,930 per kg during intraday on the MCX. The precious metal had tumbled 2.5 percent yesterday on the COMEX, tracking strength of the dollar.

The white metal turn in the red after a gap-up start in the afternoon session.

The semi-precious metal has been trading lower than 5, 20, 50 and 100 days’ moving averages but higher than the 200-days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 37.05, which indicates weakness in the price.

Silver has been weighed down by concerns about the health of the Chinese economy, a slowdown in manufacturing activity globally and China’s crackdown on raw material prices.

Silver holdings in iShares ETF fell by 224.9 tonnes to 17,451.62 tonnes. The fund NAV is trading at a discount of 0.78 percent.

The US dollar index modestly fell to 92.84, down 0.06 percent against the major cross.

Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International silver prices are trading flat to marginally lower in early afternoon trade in Asia, tracking stronger dollar. Technically, LBMA Silver supports are at $25.00 and $24.70. Resistances are at $25.40 and $25.70.”

“Domestic silver prices are trading higher on Tuesday in early afternoon trade, tracking overseas prices. Technically, MCX Silver September supports are at Rs 66,800 and Rs 66,000 levels. Resistances are at Rs 67,700 and Rs 68,400”, he added.

The spot gold/silver ratio currently stands at 72.21 to 1 indicating that gold has outperformed silver. The ratio jumped to the highest level since January and is negative for silver prices.

MCX Bulldesk decreased 12 points, or 0.08 percent, to 14,650 at 15:22. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

In the futures market, silver for September delivery touched an intraday high of Rs 67,499 and a low of Rs 66,930 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 66,930 and a high of Rs 75,215.

Silver delivery for the September contract dropped Rs 166, or 0.25 percent to Rs 67,080 per kg at 15:25 hours with a business turnover of 13,644 lots. The same for the December contract fell Rs 72, or 0.11 percent, to Rs 68,467 per kg with a turnover of 735 lots.

The value of September and December’s contracts traded so far is Rs 704.53 crore and Rs 13.36 crore, respectively.

Similarly, the Silver Mini contract for August dipped Rs 152, or 0.23 percent at Rs 67,373 on a business turnover of 21,957 lots.

Silver has fallen sharply in the last few days but we may see some buying interest near $25/oz level and amid pick up in investor buying; however, a sharp rise is unlikely until industrial metals recover significantly or gold regains upward momentum, said Kotak Securities.

At 1000 (GMT), the precious metal was slightly up 0.10 percent and was quoting at $25.16 an ounce in New York.

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