MCX Silver sideways to bearish; may witness range bound trade

MUMBAI-INDIA (July 16) The trend in silver futures for September delivery on India's Multi Commodity Exchange (MCX) looks sideways to bearish for the day and traders are advised sell on rise.

“For intra-day, support for the commodity is seen at 40000 while 41200 is the resistance. The prices are expected to trade range bound,” said Amrita Mashar, Research Analyst at Commodity Online.

MCX silver futures for September delivery was seen trading up by 0.18% at Rs. 41025 per kilogram as of 04.29 PM IST on Tuesday.

Bullion prices in the international market edged down on Tuesday as investors are eyeing on the US Federal Reserve’s next decision on monetary stimulus. The testimony from US Federal Reserve Chairman Ben Bernanke before a congressional committee is scheduled to be held on Wednesday and the day after tomorrow.

Silver futures for September delivery on Globex platform of Comex was seen trading up by 0.42% at $19.932 per troy ounce as of 04.30 PM IST on Tuesday.

UK Consumer Prices Index (CPI) grew by 2.9% in the year to June 2013, up from 2.7% in May. The largest upward contributions to the change in the rate came from motor fuels and clothing & footwear. The largest downward contribution came from air transport, according to the data released by the National Statics.

The inflation rate is slightly above the figures seen over the previous 12 months but below the levels reached between the start of 2010 and spring 2012.