Silver prices declined to Rs 62,919 per kg on October 22 as participants increased their short positions. The precious metal had gained a percent on the COMEX on October 21.
Silver prices traded lower tracking weakness in gold prices and a firm dollar. The Dollar Index is trading higher at 92.82 levels, up 0.25 percent.
The precious metal has been stuck in a broad range as further clarity is awaited on US stimulus as well as UK-EU post-Brexit trade deal.
Silver holdings in iShares ETF were unchanged at 17,455.09 tonne.
MCX iCOMDEX Bullion Index dropped 92.13 points, or 0.58 percent, to 15,705.15 at 14:57 hours. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, silver for December delivery touched an intraday high of Rs 63,250 and a low of Rs 62,766 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 49,415 and a high of Rs 79,723.
Silver futures for December delivery slipped Rs 710, or 1.12 percent, to Rs 62,919 per kg at 14:58 hours on a business turnover of 16,089 lots. The same for the March delivery slid Rs 627, or 0.96 percent, to Rs 64,680 per kg on a turnover of 1,097 lots.
The value of December and March’s contracts traded so far is Rs 1,113.03 crore and Rs 26.21 crore, respectively.
The spot gold-to-silver ratio currently stands at 77.23 to 1, indicating that gold has outperformed silver.
Sriram Iyer, Senior Research Analyst at Reliance Securities, sees resistance for silver near Rs 64,000 and support at Rs 62,200-61,300 levels. “A breach of this level will see silver continue its upside momentum to Rs 67,800-68,500 levels.”
Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking, said, “Traders can buy silver at Rs 62,600 levels, with a stop-loss of Rs 61,900 levels, for a target of Rs 63,600 levels. Silver may test $26.50 levels soon.”