Silver futures soar to Rs 73,645 per kg on strong demand; up nearly 15% since January 28
In the futures market, silver for March delivery touched an intra-day high of Rs 73,888 and a low of Rs 71,650 per kg on the MCX.
Silver
Silver prices soared to Rs 73,645 per kg on February 1 as participants increased their long positions as seen by the open interest. The precious metal had gained 4.6 percent last week on the MCX.
The white metal prices started with a gap up trade on February 1 in Asian trade, up by over 4.5 percent amid talks that silver was the new target for the retail crowd and a wave of fresh enthusiasm from online traders.
Gold market once again remained caught in a tug of war between expectations of an improving economy and rising inflation pressures as Joe Biden took office. Hopes of a massive stimulus bolstered the prospects for precious metals. Janet Yellen said that tax cut in 2017 for large corporation should be repelled, helping gold/silver to rally. Gold has resistance around $1,865 and needs to break that level for momentum to take it above $1,900. $1,820-$1,810 is the immediate support and we believe gold will trade in range until market gets more clarity on the new administration s policies.
Silver rallied along with gold after Yellen urged lawmakers to act big on coronavirus relief spending, adding that the benefits outweigh the expenses of a higher debt burden. In the near term, gains in gold and silver will be limited due to higher yields and some dollar strength. The price gain suggests bears are exhausted and signals that near-term market bottom is in place. Silver bulls next upside
South Australia accounts for more than a quarter of the country’s gold resources, but only 4 percent of gold production.
Australia is one of the world’s top gold miners, most recently producing 325.1 tonnes in 2019 and securing either second or third place for global production, depending on who you ask. From 2012 to today, the country has seen consistent increases in production year-on-year.
The most famous jurisdiction for mining output is Western Australia, which accounts for more than 60 percent of national output. The state of South Australia accounts for over a quarter of the country’s gold resources, but only 4 percent of production, according to South Australian government data.