MCX Silver sideways to bearish; may witness further buying above 41500

MUMBAI (July 26) The trend in silver futures for September delivery on India's Multi Commodity Exchange (MCX) looks sideways to bearish 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. If commodity breaks 41500 level then further buying is expected during intra-day trade,” said Amrita Mashar, Research Analyst at Commodity Online.

MCX silver futures for September delivery was seen trading down by 0.63% at Rs. 41078 per kilogram as of 05.20 PM IST on Thursday.

Bullion in the global market slipped on Thursday after positive data releases from the United States and Europe.

Silver futures for September delivery on Globex platform of Comex was seen trading up by 0.15% at $20.053 per troy ounce as of 05.32 PM IST on Thursday.

A positive US Housing data released on Wednesday may have negatively effected the silver prices in the global market.

Sales of new single-family houses in June 2013 were at a seasonally adjusted annual rate of 497,000. This is 8.3 percent above the revised May 2013 estimate of 459,000.

Meanwhile, at 51.9, the final Markit US Manufacturing Purchasing Managers’ Index (PMI) signalled only a modest manufacturing expansion in June.

Having fallen from 52.3 in May, and dropping below the earlier flash estimate of 52.2, the PMI indicated the slowest rate of growth since last October. The PMI averaged 52.1 in Q2 as a whole. This was down from 54.9 in Q1 and was the lowest reading since Q3 2012.

The Ifo Business Climate Index for industry and trade in Germany rose for the third time in succession. Assessments of the current business situation are more positive than last month. Although the six-month business outlook weakened slightly, firms remain cautiously optimistic with regard to their future business outlook. Conditions in the German economy remain fair.

The Ifo Business Climate Index rose to 106.2, higher when compared to the previous data of 105.9. The German Ifo Business Climate Index rates the current German business climate and measures expectations for the next six months.