Thursday, January 27, 2011

MCX Commodity Updates- Silver at 6 weeks Low

In International markets, Silver future prices climbed on Wednesday on technical buying and short covering by investors and speculators.

In last trade, Silver future traded at 27.63 USD per ounce. Silver future has fallen more than 10 percent from beginning of the year 2011. Presently, Silver future prices are trading at 8 weeks low on weak physical demand.

Silver future expected to fall further till 25 USD levels. Silver future prices are likely to fall further and may test 23 in coming weeks if a price sustains below 27 USD.

At MCX counter, Silver future prices settled at 42200 rupees per kilogram higher which is up by more than one percent from previous close of 41747 tracking strong buying sentiment in international market. Silver future opened slightly higher at 41850 compared to previous day's close of 41747 rupees.

Instant Support for Silver looks at 40600 and 39410 rupees. While crucial resistance seems to be at 44000. Silver prices may fall further to test immediate support levels if prices failed to sustain resistance levels in near term, maintained Amrita Mashar, commodity analyst with Commodity Online.

Movement in Dollar Index and fell in ETF holding are playing key role to put pressure on silver prices these days.

Overall trend seems to be extremely bearish for Silver future in coming weeks. Short term bearishness will continue because of weak physical demand in global market and improved economic condition from US and Euro zone.


Posted By Commodity MCX Tips