MCX Silver crashed to 40900 range ahead of Bernanke

MUMBAI-INDIA (Aug 7)   Silver prices at India’s Multi Commodities Exchange (MCX) were down by 1.35%. Silver for September delivery was seen trading around Rs 40,972-41,445 per kg levels.

Silver dropped after strong U.S. trade data saw investors reassess expectations on when the Federal Reserve may start to taper its asset purchase program. The Commerce Department said that the U.S. trade deficit narrowed by 22.4% to a seasonally adjusted USD34.2 billion in June.

On Wednesday trade, September silver contract rose to a high of 41445 Rs/kg as of 02.10 pm IST and is expected to trade negative in later session. For intra-day, support is now seen at 40700, 40500 levels and resistance at 41400 & 41600, analyst said.

On COMEX, silver was down $0.18 at 19.34 per troy ounce in electronic trading at 04.58 p.m. Singapore time.

In the evening session, Federal Reserve Chairman Ben Bernanke’s speech on monetary stimulus may put pressure on silver prices. We expect MCX Silver to trade bullish.