Silver prices were steady at Rs 68,974 a kg on February 10 as participants increased their long positions as seen by the open interest. The precious metal had declined 1.2 percent the previous day on the COMEX.
The white metal pared earlier losses after a gap down to trade flat to positive in the afternoon session, tracking muted trend in gold.
Kotak Securities said silver has corrected sharply from recent highs as retail buying subsided, however,,with ETF holdings still high and gold-silver ratio remaining below 70 levels there seems to be more room for a price correction.
Silver holdings in iShares ETF fell by 57.8 tonnes to 19,750.28 tonnes, the lowest since February 1.
The US dollar index was trading marginally higher at 90.37 levels, up 0.01 percent in the afternoon trade.
MCX iCOMDEX Bullion Index was mildly up 7.65 points, or up 0.05 percent, at 15,179.41 at 14:54. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International silver prices traded in the green this Thursday morning and early afternoon trade amid hopes that industrial demand could rebound after hopes of the passage of the US stimulus bill. However, investors remained cautious given the volatility over the last few trading sessions.”
Technically, LBMA silver spot could trade within the range of $26.60-$28.00 levels. Domestic silver prices were trading marginally in the green, tracking overseas prices. Technically, MCX Silver March support is at Rs 68,200-68,050, whereas resistance is at Rs 69,600-69,900 levels, said Iyer.
In the futures market, silver for March delivery touched an intraday high of Rs 69,270 and a low of Rs 68,189 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 54,386 and a high of Rs 79,980.
Silver delivery for March contract soared Rs 48, or 0.07 percent, to Rs 68,974 per kg at 1457 hours, with a business turnover of 13,094 lots. The same for the May contract gained Rs 31, or 0.04 percent, to Rs 70,022 per kg with a turnover of 1,978 lots.
The value of March and May’s contracts traded so far is Rs 1,218.23 crore and Rs 70.10 crore, respectively.
The spot gold/silver ratio currently stands at 67.89 to 1 indicating that gold has outperformed silver.
Silver prices edged lower in the last trading session after it failed to sustain higher around Rs 70,000 level and drifted lower towards Rs 69,000 after it broke the strong support zone of Rs 69,500, said Axis Securities.
The short-term trend is looking negative to sideways for silver as the price is trading below 9 and 20 days EMA and RSI is trading below 60 indicating low momentum.
At 0933 GMT, the precious metal was up 0.49 percent quoting at $27.21 an ounce in New York.