On February 1, silver prices in Indian markets increased as global rates rallied. On Multi Commodity Exchange, silver futures rose by 6%, which equals Rs 4,200. It settled at Rs 73,888 per kg, extending the 3-day gains to Rs 7,500 in domestic markets. On Friday, the white metal price on Multi Commodity Exchange had boosted by Rs 2,170 or 3.2% per kg. Although the precious metal rose today, it is still down nearly Rs 6,000 from their lifetime high of nearly Rs 80,000 reached in August 2020.
Meanwhile, gold futures on the Multi Commodity Exchange increased by 0.5% and traded at Rs 49,717 per 10 gram.
In international markets, silver prices climbed 7.4% to nearly six-month high today. This happened after social media posts last week called for retail investors to flood into the market and push up the precious metal prices.
The white metal has boosted nearly 15% since message began circulating on Reddit on January 28 morning. It pushed retail investors to get silver mining stocks and iShare Silver Trust, an exchange-traded fund backed by physical silver bars, in a GameStop-style squeeze.
Still, analysts have advised investors to be cautious. According to Kotak Securities, the recent rally has no fresh triggers and is entirely driven by speculation.
Furthermore, spot gold in international markets increased by 0.3% and settled at $1,852.35 per ounce.
Furthermore, Asian equities struggled to increase amid uncertainties about vaccine rollouts and economic recovery. MSCI’s broadest index of Asia-Pacific shares outside Japan recouped early losses to grow 0.7%, rebounding after four straight sessions of losses.
Silver holdings in iShares ETF increased by 1,070.56 tonnes
The U.S. Dollar Index traded marginally higher at 90.53 levels, up 0.02%, in the morning trade.
Silver holdings in iShares ETF increased by 1,070.56 tonnes to 18,722.33 tonnes. In the futures market, silver for March delivery reached an intra-day high of Rs 73,888 and a low of Rs 71,650 per kg on the Multi Commodity Exchange.
Silver delivery for March contract climbed Rs 3,939, or 5.65% to Rs 73,645 per kg with a business turnover of 14,591 lots. The May contract rose Rs 4,059, or 5.74% to Rs 74,800 per kg with a turnover of 1,237 lots.
Meanwhile, the value of March and May’s contracts traded at Rs 1,156.39 crore and Rs 51.53 crore, respectively.
The spot gold/silver ratio currently stands at 65.15 to 1, showing that the white metal has outperformed gold.
