On September 22, Silver prices dropped to Rs 60,357 per kg. Participants rose their short positions as seen by the oper interest. The yellow metal had eased 9.67 percent yesterday on Multi Commodity Exchange.
Silver prices decreased as gold prices witnessed a decline as a broader market sell-off caused by uncertainty over more US fiscal stimulus pressured the precious complex with a stronger USD.
According to Sunilkumar Katke, Head of Commodities and Currency at Axis Securities Limited, Silver improved by Rs 6,000 per kg on September 22 and reached crucial support of $25 at Comex. The metal’s price hit the Rs 61,000 mark at MCX from its Rs 68,000 levels.
On August 6, Silver has decreased Rs 15,695, which equals 20.64 percent from the high of Rs 76,052.
The USD index, measured toward a basket of six currencies, was increased by 0.02 percent to 93.70, the highest level since July 27.
Silver holdings in iShares ETF remained intact at 17,211.13 tonnes, lowest since July.
MCX iCOMDEX Bullion Index fell 96.08 points, or 0.62 percent, at 15,374.84. That index tracks the real-time performance of MCX Gold and MCX Silver futures.
Silver for December delivery reached an intraday high of Rs 61,990
In the futures market, Silver for December delivery reached an intraday high of Rs 61,990 and a low of Rs 59,570 per kg on the MCX. In the current series, the precious metal has settled a low of Rs 49,415 and a high of Rs 79,723.
Silver delivery for the December contract dropped by 1.56 percent or Rs 959. Consequently, it settled at Rs 60,357 per kg with a business turnover of 16,418 lots. The March contract lost Rs 1,121, or 1.76 percent, to Rs 62,430 per kg with a turnover of 439 lots.
The December contract value traded at Rs 2,879.88 crore, while March’s contracts traded at Rs 39.22 crore.
Significantly, the spot gold/silver ratio currently stands at 78.66 to 1. This means the amount of white metal required to purchase one ounce of gold.
Katke expects the demand for Silver to remain sideways for other months and hope the prices stay in the range of Rs 60,000-70,000 per kg; from a traders perspective, for the day, we advise a sell at Rs 60,800 with stop loss at Rs 61,500 and a target of Rs 59,600.
According to the recent data, the precious metal decreased by 0.23 percent, quoting $24.33 an ounce in New York.