MCX Silver hit high after Bernanke's speech

MUMBAI-INDIA (July 12)  Silver prices at India’s Multi Commodities Exchange (MCX) witnessed a bullish rally. Silver for September delivery is now trading around Rs 40300-41948 per kg levels.

Ben Bernanke’s speech on monetary aggregates and U.S dollar impacted future prices. Data on US Initial Jobless Claims, Continuing Jobless Claims and Import Price Index are scheduled to be released at 06.00 PM IST today.

On COMEX, silver for September delivery is trading down at $20.01 per oz at 04.10 am CT.

On Thursday trade, silver September contract rose to a high of 41948 Rs/kg at 02.16 pm IST and is expected to trade negative in later session. For intra-day, support is now seen at 41000, 40900 levels and resistance at 41900 & 42000, analyst said.

On charts, silver prices are showing a recovery phenomenon. The commodity is  trading above 20 day SMA at 40978 levels. RSI at 50.48 is neutral and stochastic is recovering from oversold levels.

In the evening session, release on Federal Budget Balance and strength in dollar index may impact futures trading. We expect MCX silver to trade on bullish note.