MCX Silver Sep contract may see downtrend

MUMBAI-INDIA (Aug 6 )  Spot Silver prices decreased by 1.06% in the yesterday's trading session taking cues from decline in spot gold prices. Further, mixed global market sentiments added downside pressure on the prices. However, weakness in DX coupled with rise in US Non-Manufacturing PMI cushioned sharp fall in the prices.

In the Indian markets, silver prices fell by 0.65% taking cues from international spot silver prices. Further, appreciation in the Indian Rupee exerted downside pressure. Silver prices touched an intraday low of 41,454/Kg and closed at 41,760/Kg.

Commenting on the outlook, the broking firm Sushil Finance said, "We expect spot Silver prices to trade on the negative note on the back of rise in risk aversion in the global markets. Further, silver may take cues from the spot gold prices and trade with negative bias. However, sharp downside in the prices may be prevented on the back of robust economic data from US coupled with weakness in DX. In the Indian markets, depreciation in the Indian Rupee may prevent sharp downside in the prices."

"MCX Silver September contract may see down trend with support at Rs 41,000/41,500 and resistance is placed at Rs 41,950/42,100," it added.