Comex, MCX Silver bearish on US stimulus concerns, weak global cues
NEW DELHI-INDIA (Aug 7) Silver prices fell significantly in the global market on Wednesday on concerns over US monetary stimulus and positive economic data releases from around the globe.
As of now, silver prices on Comex (US Silver) is seen trading bearish. Silver for September delivery on Globex platform of Comex was seen trading down by 1.47% at $19.193 per troy ounce as of 03.20 PM IST on Wednesday.
The trend in silver futures for September delivery on India's Multi Commodity Exchange (MCX) is sideways to bearish and traders are advised to book profit in narrow range for the day, according to our analyst at Commodity Online.
“For intra-day, support for the commodity is seen at 40700, 40500 levels while resistance is seen at 41400 and 41600 levels, said John Goldson, Technical Analyst at Commodity Online.
MCX silver futures for September delivery was seen trading down by 1.49% at Rs. 40914 per kilogram as of 03.16 PM IST on Wednesday.
MCX silver prices are expected to trade bullish in the short term (this week) following strong buying recorded in the last week.
“For near term, support for MCX silver for September delivery is seen at 40600 and resistance is above 42200 mark. Those who want to enter short term trades are advised to buy on dips considering major support as stop loss,” said Amrita Mashar, Research Analyst at Commodity Online.
Bullion in the global market slipped after comments on US monetary stimulus by Charles Evans, president of the Chicago Federal Reserve Bank. Positive economic data releases from major economies of the world were also seen pressuring the yellow metal prices to certain extent.
US Federal Reserve may cut its monetary stimulus as early as possible later this year depending on the progress in the economy, said Charles Evans, president of the Chicago Federal Reserve Bank on Tuesday.
In Germany, the production index for the production industries increased by 2.4% in June 2013 when compared with May 2013 (-0.8% in May 2013), according to the data released by the Destatis on Wednesday.
The index of production industries (excluding energy and construction) also increased by 2.2%. The construction sector was 1.6% above preceding month’s level