Silver exchange-traded funds (ETFs) advanced on Tuesday, tracking gains in underlying precious metal prices, while tensions in West Asia entered a third week of escalation.
The ETFs were taking cues from gains in silver prices. Multi-Commodity Exchange (MCX) May 5 contracts for silver gained nearly 1 per cent to ₹2,62,650 per 1 kg. MCX gold April 3 futures are up 0.55 per cent to ₹1,56,611 per 10 grams on Tuesday.
Although the broader structure remains bullish, the recent correction has impacted short-term momentum, Ponmudi R, chief executive officer of Enrich Money, said. Key support is placed at ₹2,47,000-₹2,50,000, and holding above this zone is crucial to maintain the bullish structure. “A sustained move above ₹2,65,000 could trigger an upside move toward ₹2,75,000-₹2,80,000, while a breakdown below support may lead to increased selling pressure.”
Looking ahead, precious metals may remain soft in the near term, with sharp moves in either direction unlikely in the absence of a significant shift in the geopolitical or policy outlook, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said. “Traders eye the upcoming FOMC policy meeting for updated economic projections for clues on the policy outlook as the Fed is widely expected to maintain the status quo on rates.”
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