AHMEDABAD(Commodity Online): Technical charts are looking slightly positive for MCX silver.
“Immediate resistance stays at 54000 and upside can be witness till 54300. Strong support for contract stays at 53300 and 53100. Relative strength index(RSI) is trading at 57.60 which may support prices from bottom levels.” said Amrita Mashar, Manager Research, Commodity Online.
MCX Silver September contract closed at Rs 53750 per kilogram on Thursday.
Meanwhile, silver markets are in for a surplus, according to data compiled by various agencies. The 2012 surplus is estimated at around 3000 tons even as the next-year surplus is pegged at about 4000 tons.
But, if the stimulus measures by various government agencies are announced, there can be little doubt that silver would scale new heights.
Now, if the growth figures show a pickup, which is deemed by IMF to touch 3.9% in global growth in 2013 compared to 3.5% in 2012, which is some good news; silver could boom further, a previous report noted. Silver is mainly used in industrial applications and products and enhanced growth figures may take it further up.
While the silver continues to take its cue from gold, there is a downside risk of a rising surplus in the form of weakness in industrial demand and slower-than-expected exchange-traded-fund buying in the first half, UBS also said in a report