MCX Silver sideways to bullish; resistance 42000

MUMBAI-INDIA  (July 15): The trend in silver futures for September delivery on India's Multi Commodity Exchange (MCX) looks sideways to bullish and intra-day traders are advised to stay on buy side.

“For intra-day, support for the commodity is seen at 41500 while 42000 is the resistance. If prices break the level of 42000 then the commodity is expected to move towards 42500 and 43000 levels,” said Amrita Mashar, Research Analyst at Commodity Online.

MCX silver futures for September delivery was seen trading down by 0.15% at Rs. 41419 per kilogram as of 02.40 PM IST on Monday.

Bullion in the international market rose on Monday as US Federal Reserve Chairman recently hinted that the Central Bank may continue with its existing monetary stimulus. Prices were also buoyed as Chinese GDP data for the second quarter matched expectations at 7.5 percent.

Meanwhile, after starting night hours trading, China's Shanghai Futures Exchange (SHFE) registered record volumes in gold and silver.

Weekly buy and sell trading volume for the most active gold contract more than doubled from a week ago to 2.06 mn lots as of Friday, exchange data showed.

Daily transactions for gold rose to a record of 595,642 lots on Thursday, compared to an average of 483,529 lots in June, the data showed. Daily volume for the silver contract rose roughly six-fold from a week ago to 2.23 mn lots on Thursday.

Silver futures for September delivery on Globex platform of Comex was seen trading up by 0.04% at $19.783 per troy ounce as of 02.52 AM IST on Monday.