Silver prices fell around 1.2 percent to Rs 66,625 per kg on March 2 as participants trimmed their positions as seen by the open interest. The precious metal had gained 0.9 percent yesterday on the COMEX.

The white metal traded in the negative territory after a gap-down start in the afternoon session tracking weakness in gold and firm dollar.

Kotak Securities said silver may remain volatile as risk sentiment may affect gold and industrial metals differently. However, a sharp rise is unlikely until we see substantial recovery in the gold price.

The trend in the US dollar may continue to be a key price-determining factor with a focus on the trend in the US and global bond yields, economic data from major economies and development relating to US stimulus as well as virus outbreak and vaccine progress.

Silver holdings in iShares ETF fell by 205.1 tonnes to 18,951.51 tonnes, the lowest since January 29.

The US dollar index traded firm at 91.31, up 0.29 percent in the afternoon trade against the major cross.

MCX Bulldesk dropped 75 points or 0.52 percent, at 14,420 at 15:05. 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 continued to trade lower this Tuesday morning an early afternoon trade in Asia, tracking the strength of the US Dollar. Technically, LBMA spot silver has pivotal support at $25.93 and a close below could witness a correction towards $25.50. Important resistance is at $26.50.”

“Domestic silver prices are trading weaker this Tuesday morning an early afternoon trade, tracking overseas markets. Technically, MCX May silver futures has pivotal support at Rs 66,400 and a close below could witness a correction towards Rs 63,650. Important resistances are at Rs 68,950-70,150”, Iyer said.

In the futures market, silver for March delivery touched an intraday high of Rs 66,820 and a low of Rs 65,863 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 fell Rs 797, or 1.18 percent to Rs 66,625 per kg at 15:09 hours with a business turnover of 568 lots. The same for the May contract slides Rs 1,035, or 1.50 percent, to Rs 67,765 per kg with a turnover of 12,783 lots.

The value of March and May’s contracts traded so far is Rs 65.68 crore and Rs 1,590.67 crore, respectively.

Similarly, Silver Mini contract for April declined Rs 929, or 1.35 percent at Rs 67,882 on a business turnover of 13,108 lots.

The spot gold/silver ratio currently stands at 66.06 to 1 indicating that gold has outperformed silver.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Silver is trading at crucial resistance level now as if we break Rs 67,000 this time, we will have clear way towards Rs 65,000. The precious metal has support at Rs 66,000-65,000 levels whereas resistance is at Rs 70,000-72,000 levels.

At 09:45 (GMT), the precious metal was down 1.67 percent quoting at $26.23 an ounce in New York.