Silver prices climbed to Rs 62,175 per kg on November 10 as participants increased their long positions as seen by the open interest. The precious metal traded firm today after a steep fall of 6.86 percent yesterday on MCX.
The white metal was getting support from improving manufacturing activity globally and general optimism about China.
The US dollar index trades marginally firm at 92.73 levels up 0.02 percent against a basket of currencies in the afternoon session.
Silver holdings in iShares ETF rose by 128.7 tonnes to 17,911.91 tonnes.
MCX iCOMDEX Bullion Index was up 232.98 points, or 1.53 percent, at 15,495.77 at 15:19. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International and domestic silver prices have attempted a recovery like gold after a significant sell-off in the previous session, tracking the rebound in gold and as the U.S Dollar upside stalls.”
Technically, LBMA Silver Spot has maintained above 100-Daily Moving Average where it has bounced back from $23.90 levels in past performance indicating strong support at this level. Prices could trade in a range of $23.80-$24.56 levels, he said.
In the futures market, silver for December delivery touched an intraday high of Rs 62,794 and a low of Rs 61,820 per kg on the 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 delivery for December contract surged Rs 1,321, or 2.17 percent to Rs 62,175 per kg at 15:20 hours with a business turnover of 13,278 lots. The same for the March contract edged higher Rs 1,323, or 2.11 percent, to Rs 63,926 per kg with a turnover of 2,294 lots.
The value of December and March’s contracts traded so far is Rs 1,801.88 crore and Rs 15.56 crore, respectively.
The spot gold/silver ratio currently stands at 77.89 to 1 indicating that gold has outperformed silver.