MCX Silver sideways; traders eye Bernanke testimony

MUMBAI-INDIA (July 18) The trend in silver futures for September delivery on India's Multi Commodity Exchange (MCX) looks sideways and the commodity prices may witness range bound trade for the day.

“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 0.05% at Rs. 41040 per kilogram as of 04.35 PM IST on Wednesday.

Testimony from US Federal Reserve Chairman Ben Bernanke is expected to be at 07.30 PM IST today. It would be closely watched by the investor community as there are expectations that the Fed Chairman would reveal more about the tapering of QE measures, whether or not it would be carried out. Hence, it is a wait-and-watch mode for the community.

Silver futures for September delivery on Globex platform of Comex was seen trading down by 0.59% at $19.818 per troy ounce as of 04.44 PM IST on Wednesday.

Meanwhile, world's largest primary silver producer, Mexico's Fresnillo announced a 6.3 percent increase in attributable silver production in the quarter to end-June.

Fresnillo in a statement said the output of 10.9 million ounces is a result of the continued ramp-up at Saucito and increased volumes milled at Cinega.

However, the company said it's attributable gold production of 118,315 ounces was down by 6.8% year on year, due to the slower rate of recovery and reduced volume of ore deposited at Soledad-Dipolos.