MCX Silver sideways to bullish; US GDP rises 1.7% in Q2 Y/Y

MUMBAI-INDIA  (July 31) 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 buy on dips.

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

MCX silver futures for September delivery was seen trading down by 0.06% at Rs. 41639 per kilogram as of 06.24 PM IST on Wednesday.

Silver futures for September delivery on Globex platform of Comex was seen trading up by 0.15% at $19.708 per troy ounce as of 06.36 PM IST on Wednesday.

US gross domestic product (GDP) the output of goods and services produced by labor and property located in the United States increased at an annual rate of 1.7 percent in the second quarter of 2013, according to the advance estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.1 percent (revised).

Bullion in the global market edged up on Wednesday ahead of FOMC interest rate decision which is scheduled to be released at 11.30 PM IST today.

The US Federal Reserve's Federal Open Market Committee (FOMC) statement is expected at 11.30 PM IST today and traders are expected to critically analyse the statement to gather clues whether US Federal Reserve withdraw its monetary stimulus later this year.

The Euro area (EA17) seasonally-adjusted unemployment rate was 12.1% in June 2013, stable compared with May4. The EU27 unemployment rate was 10.9%, down from 11.0% in May4. In both zones, rates have risen compared with June 2012, when they were 11.4% and 10.5% respectively. These figures are published by Eurostat, the statistical office of the European Union.