Silver futures up sharply, track gold prices higher

Mcx Silver Tips @ www.mcxfreetips.com

                    Silver futures rose sharply during European morning hours on Monday, tracking gold prices higher as investors returned to the market to seek cheap valuations following last week’s rout.

On the Comex division of the New York Mercantile Exchange, silver futures for May delivery traded at USD23.30 a troy ounce during European morning trade, up 1.5% on the day.

Comex silver prices rose by as much as 2% earlier in the session to hit a daily high of USD23.55 a troy ounce. Prices fell to a 30-month low of USD22.01 a troy ounce on April 16.

Silver prices were likely to find support at USD22.03 a troy ounce, the low from April 16 and near-term resistance at USD23.85, the previous session’s high.

Silver futures have lost nearly 16%, or almost USD4.30 per ounce, since April 12, as investors exited the market after prices broke below key support levels. 

Prices of the silver metal are down nearly 53% since hitting an all-time high of USD49.81 an ounce in April 2011.

Silver has been on the decline given “weak industrial demand and mixed investor interest,” analysts at Barclays wrote in a research note last week.

Market analysts have warned that a drop below the USD22.00-level can lead to further losses in the near-term.

Elsewhere on the Comex, gold for June delivery rose 1.9% to trade at USD1,422.45 a troy ounce, while copper for May delivery dropped 1.4% to trade at USD3.105 a pound.