SINGAPORE (Commodity Online):Spot silver fell Monday on the back of strong US dollar and on fears that Spain might need a sovereign bailout. Spot silver prices declined by 0.62% to $27.12 per ounce on Monday morning session.
“Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible nearterm. If it renews the rally off June's low, June's high crossing is the next upside target. If itr extends this month's decline, June's low crossing is the next downside target.”, HY Markets report says.
The support level of spot silver on Monday seen at $26.96, $26.57 and $26.34, according to HY Markets and resistance level seen at $27.58, $27.81 and $28.20.
From the intraday perspective, we expect precious metals to trade with bearish note due to strength in the DX along with bearish global sentiments, according to Angel Commodities.
India’s Multi Commodity Exchange (MCX), September Silver contract traded at Rs.52839 per 1 Kg, lower by 0.01% in the morning session.
High prices caused by a weak currency (rupee) have already hurt demand in large markets such as India. A poor monsoon will further weaken demand. However, depreciation in the India Rupee will cushion sharp fall in the precious metals on MCX.
For intraday trade September contract support level seen at Rs. 52450-Rs.52100 per Kg and resistance level at Rs.53100-Rs.53400, as per Angel Commodities.