The white metal traded in the negative territory after a gap-down start tracking muted overseas cues.
The semi-precious metal has been trading higher than 20, 100 and 200 days’ simple moving averages but lower than 5 and 50 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 46.43, which indicates weakness in the price.
“MCX Silver has failed to break above the falling trend line of symmetrical triangle that reversed sharply, closing the previous week with a negative note. The 14-period RSI has turned below the mid-level of 50 signifying weakness and MACD is about to give crossover confirming the same,” said Navneet Damani, VP – Commodities Research at Motilal Oswal Financial Services.
“Now strong resistance is at Rs 69,400 whereas immediate support is at Rs 66,600. Price sustained break below the support will confirm weakness towards Rs 62,500; so selling- on-rise strategy is advised for short-term,” he added.
Silver holdings in iShares ETF dropped by 28.84 tonnes to 17,267.10 tonnes. The fund NAV is trading at a premium of 0.33 percent.
The US dollar index soared to 92.28, up 0.18 percent against the major cross.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “LBMA Silver spot has been traded back and forth during the course of last week while we have seen momentum towards the downside support of $25.75. MCX Silver has formed an Ascending wedge pattern in intraday chart and price has remained around support-line level by the end of last week.”
The spot gold/silver ratio currently stands at 69.50 to 1 indicating that gold has outperformed silver.
MCX Bulldesk fell 74 points or 0.51 percent, at 14,670 at 15:29. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, silver for September delivery touched an intraday high of Rs 69,121 and a low of Rs 68,739 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 67,700 and a high of Rs 75,215.
Silver delivery for the September contract slides Rs 507, or 0.73 percent to Rs 68,790 per kg at 15:30 hours with a business turnover of 11,382 lots. The same for the December contract declined Rs 360, or 0.51 percent, to Rs 70,240 per kg with a turnover of 493 lots.
The value of September and December’s contracts traded so far is Rs 709.54 crore and Rs 4.63 crore, respectively.
Similarly, the Silver Mini contract for August slumped Rs 446, or 0.64 percent at Rs 68,991 on a business turnover of 15,098 lots.
At 1002 (GMT), the precious metal fell 0.69 percent, quoting at $26.05 an ounce in New York.