MCX Silver may trade sideways to bullish; COMEX Silver down on profit booking

MUMBAI-INDIA (Aug 20)  Silver futures edged down on profit booking at India's Multi Commodity Commodity Exchange (MCX) and COMEX on Tuesday. Weakness in Indian Rupee (INR) against US Dollar (USD) was seen limiting further decline in MCX silver to certain extent.

However, MCX silver is expected to witness slight up-tick in the evening session as a result of lower level buying, according to our analyst at Commodity Online.

The trend in MCX silver for September delivery looks sideways to bullish for the day and traders are advised to buy on dips for the day.

“For intra-day, support for the commodity is seen at 49000 and below that it may test level of 48500 while strong resistance is seen at 51200,” said Amrita Mashar, Research Analyst at Commodity Online.

“Traders may take buy position near 49500 with stop loss of 49000 for target near 50500,” she added.

For near term, MCX silver prices are likely to trade positive following strong buying sentiments in the international market. Strong support for silver is seen at 45000 while resistance is seen at 52000.

MCX silver futures for September delivery was seen trading down by 1.85% at Rs. 50270 per kilogram as of 05.17 PM IST on Tuesday.

Bullion traders awaiting for Federal Open Market Committee (FOMC) meeting minutes scheduled to be released at 11.30 PM IST on Wednesday to gather clues on the withdrawal of bullion friendly US monetary stimulus.

Silver futures for September delivery on Globex platform of Comex was seen trading down by 0.83% at $22.96 per troy ounce as of 05.32 PM IST on Tuesday