Silver July declined for a third day, losing as much as 1.6% to $28.915 an ounce, the cheapest since Jan 10. Comex Silver July futures prices on Tuesday closed near the session low. Commodity & Equity Markets were both down for the day. Silver prices are in a nine-week-old downtrend on the daily bar chart.
Silver has a strong technical support in the $28 to $26.20 range on the downside & should ideally bounce up from this level. Any breach with a sustained momentum below this level may signal a strong bearish trend.
Weakening in the Indian economic performance, its investment-grade rating & political uncertainty are driving the INR lower & will inversely push Gold, Silver Prices up, and thereby motivating people to seek gold / silver for a safety.
MCX Silver trading may see some bottom fishing at lower rates and in addition a weaker INR accelerates the demand for Bullion’s.