MCX Silver sideways to bearish; may fall till 40800 level

MUMBAI-INDIA (Aug 1)  The trend in silver futures for September delivery on India's Multi Commodity Exchange (MCX) looks sideways to bearish and intra-day trader are advised to sell on rise. The white metal is expected to witness a range bound trade for the day, according to our analyst at Commodity Online.

“For intra-day, support for the commodity is seen at 40800 while 41500 is the resistance,” said Amrita Mashar, Research Analyst at Commodity Online.

MCX silver futures for September delivery was seen trading up by 0.34% at Rs. 41671 per kilogram as of 05.50 PM IST on Thursday.

Bullion in the international market was seen trading under pressure on Thursday as US Dollar witnessed a firm trend. US currency recorded an up-tick after US Federal Reserve indicated on Wednesday that the central bank would continue with its existing monetary stimulus till the economy returns to its growth path.

Silver futures for September delivery on Globex platform of Comex was seen trading up by 0.99% at $19.818 per troy ounce as of 06.03 PM IST on Thursday.

A positive manufacturing data from China, Euro zone may have influenced the white metal price movement in the global market to certain extent on Thursday.

In the United States, in the week ending July 27, the advance figure for seasonally adjusted initial claims was 326,000, a decrease of 19,000 from the previous week's revised figure of 345,000. The 4-week moving average was 341,250, a decrease of 4,500 from the previous week's revised average of 345,750, according to the data released by the US Department of Labor on Thursday.

The upturn in the UK manufacturing economy continued to build momentum at the start of the third quarter, with growth rates for production and new orders the highest since February 2011, as per the data released by the Markit on Thursday. 

The United Kingdom, seasonally adjusted Markit/CIPS Purchasing Manager's Index (PMI) rose to a 28-month high of 54.6 in July, up from a revised reading of 52.9 in June (originally published as 52.5). The PMI has remained above the neutral 50.0 mark, signalling expansion- since April, with its level improving in each of the past five months.