Silver prices rose to Rs 50,870 per kg on July 1 as participants increased their long positions. The precious metal benefitted from the rally in gold due to safe-haven buying on increasing coronavirus cases and geopolitical tensions.
Silver holdings in iShares ETF increased 168.07 tonne to 15,489.77 tonne, a record high.
In the futures market, silver for September delivery touched an intraday high of Rs 50,891 and a low of Rs 50,333 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 41,558 and a high of Rs 51,697.
Silver futures for September delivery gained Rs 506, or 1 percent, to Rs 50,870 per kg at 14:22 hours on a business turnover of 12,712 lots. The same for the December contract jumped Rs 522, or 1.02 percent, to Rs 51,718 per kg on a turnover of 69 lots.
The value of September and December contracts traded so far is Rs 915.42 crore and Rs 6.32 crore, respectively.
The spot gold-to-silver ratio currently stands at 97.20 to 1, which means the amount of silver required to buy one ounce of gold. The ratio has failed to sustain above 100 as silver has risen more.
Silver is likely to trade with positive bias in September with support placed at Rs 49,950-49,700 and resistance at Rs 50,770-50,960 levels, according to Motilal Oswal. The broking firm said spot silver has intraday support at $18.05-17.85 and resistance at $18.35-18.50/oz.
At 08:57 (GMT), the precious metal was up 0.97 percent at $18.81 an ounce in New York.
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