The Hindu Business Line : Silver prices recover on cautious buying

Silver spot prices in Mumbai recovered by nearly 10 per cent on Saturday mainly on fresh but cautious buying and reduced supply, after a sharp fall of about 14.5 per cent on Thursday.

On MCX, futures prices of the white metal rebounded 3.4 per cent on the last trading day of the week supported by fresh buyings.

Silver (.999 fineness) spot prices here were up Rs 1,975 to close at Rs 21,580 per kg, a tenth over previous day's close of Rs 19,605 per kg. Considering that spot price crashed by about Rs 3,345 per kg on Thursday, the recovery since then is seen as impressive. Silver arrivals in Mumbai have been around 500-1,000 kg every day for the last fewweeks.

On Friday, silver prices in the international market were down sharply from $14.73 an ounce to day's low of $11.60 but finally settled relatively higher at $13.10 an ounce on some fund buying.

"Trading volume in the spot market was virtually halted sincethe last two days due to heavy volatility in the international market," Mr Bhargav Vaidya, a bullion analyst said, adding that world prices may recover further on continued fund buying.

Silver May futures prices on MCX platform were up around Rs 700 to close at Rs 20,838 per kg on Saturdayover the previous close of Rs 20,142 per kg. MCX registered a combined (gold and silver) turnover of Rs.1,249 crore on Saturday, with gold at Rs.551 crore and silver at Rs.698 crore. The open interest for gold was 9,439 kg, while the outstanding position for silver was 3,09,885 per kg.

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