On Tuesday, October 6, Silver prices traded steady at Rs 61,975 per kg as participant boosted their long positions. Meanwhile, on Monday, October 5, Silver increased 2.21 percent on the COMEX.
Prices increased, tracking strength in base metals prices. The expectation of a stimulus package for the U.S. economy and recovery of U.S. President Donald Trump from Covid-19 raised essential commodities like base metals and crude oil.
Significantly, Silver holdings in iShares ETF gained 14.47 tonne to 17,466.66 tonnes.
MCX iCOMDEX Bullion index boosted 0.28 percent, which equals 43.96 points, and settled at 15,576.87. The index shows the real-time performance of MCX gold and MCX silver futures.
Moreover, in the futures market, silver for December futures delivery reached an intraday high of Rs 62,230 and a low of Rs 61,713 per kg on MCX (Multi Commodity Exchange). Significantly, white metals reached a high of Rs 79,723 while it touched a low of Rs 49,415 in the current series.
Also, Silver futures for December delivery increased by 0,05 percent, which equals Rs 34 and settled at Rs 61,975 per kg on a business turnover of 16,633 lots. Meanwhile, the white metal futures March delivery dropped by Rs 3 and reached Rs 63,738 per kg on a business turnover of 713 lots.
The cost of December contracts traded at Rs 1,325.60 crore, while March’s deals traded at Rs 1,72 crore.
Meanwhile, gold managed to get over the 20 EMA at $1910 and is going to resume its upside move. If gold moves towards the $1950 level, silver will get extra support.
The spot gold to silver ratio currently is 78.66 to 1
Significantly, the spot gold to silver ratio currently is 78.66 to 1, which means the amount o silver required to purchase one ounce of gold. The decrease in the rate indicates that silver has outperformed gold.
The U.S. Dollar Index moved under 93.50 but did not manage to grow more downside momentum, which would have been bullish for precious metals. If the U.S. Dollar Index tends to settle under the recent low at 93.34, the white metal will have an excellent chance to get to the test of the resistance at the 50 EMA.
According to Anuj Gupta, Commodities and Currencies Research at Angel Broking, it is profitable to buy silver. He advises traders to purchase silver at Rs 61,700, with a stop loss at Rs 61,000 for a target of Rs 63,300.
Meanwhile, Reliance Securities’ senior research analyst, Sriram Iyer, reported MCX December white metal futures are trading with losses however stay above the vital support of Rs 61,000. ”Rs 62,600 will act as immediate resistance.”
Remarkably, the white metal decreased by 0.39 percent and settled at $24.46 an ounce in New York.