Silver futures up marginally at Rs 68,002 per kg on demand improvement

September 7, 2020

Mumbai-India (Sept 7)  Silver prices firmed up a bit to Rs 68,002 per kg on September 7 tracking gold prices. The open interest suggested an increase in long positions. The precious metal declined nearly 4 percent last week on the COMEX.

Silver prices also gained on an improved demand for industrial metals as manufacturing activity picks up across the globe.

Silver holdings in iShares ETF declined by 112.92 tonnes to 17,567.24 tonnes as outflow continued in ETF.

Silver delivery for December contract gained Rs 736, or 0.26 percent to Rs 68,002 per kg at 14:25 hours with a business turnover of 15,556 lots. The same for the March contract was up Rs 580, or 0.83 percent, to Rs 70,233 per kg with a turnover of 165 lots.

The value of December and March’s contracts traded so far is Rs 1,138.83 crore and Rs 5.90 crore, respectively.

The spot gold/silver ratio currently stands at 71.87 to 1, which means the amount of silver required to buy one ounce of gold.

Intraday bias looks positive for the MCX Silver however upside too will be capped at Rs 68,600-68,950 as it will act as strong resistance with support placed at Rs 67,350-67,100, according to Motilal Oswal. The brokerage firm said that downside will resume if price break and sustain below support.

At 09:00 (GMT), the precious metal was up 1.17 percent quoting at $27.02 an ounce in New York.


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