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    Bulls in silver see red

    Synopsis

    Nitin Kedia of Kedia Commodity added that the 3.8% fall in silver and gold to a lesser extent could result in some brokers making margin calls on their clients .

    Untitled-10Agencies
    Since India imports almost all of the gold and silver it consumes , international price moves influence local prices of the metals .
    MUMBAI: Silver prices posted its steepest intraday decline in 14 months while gold also cooled off from near record highs on upbeat services sector growth and jobs data from the US , which hinted at moderate economic growth .

    Nitin Kedia of Kedia Commodity added that the 3.8% fall in silver and gold to a lesser extent could result in some brokers making margin calls on their clients . He added that margins to trade gold and silver futures were around 5-6% .

    Precious metals also act as safe haven investments . Since India imports almost all of the gold and silver it consumes , international price moves influence local prices of the metals .

    On MCX , at 11:23 pm IST, silver front month contract traded down 3.8% at Rs 49420 a kilo . Gold October expiry contract traded down 2.3% at Rs 38898 per 10 gms . Silver fell the most in a day since June 15 last year as a technical parameter (RSI) showed it was heavily overbought , said Kedia .

    Silver and gold fell on long liquidation as bulls cut their outstanding bullish bets . For eg, at the time of writing silver Open interest was 11203 lots near closing against 12691 lots on Wednesday .



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    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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