MTECHTIPS Silver futures lower after China PMI, Bernanke remarks

MTECHTIPS:-Silver futures lower after China PMI, Bernanke remarks

Silver futures were lower on Thursday, after data showed that China’s manufacturing sector contracted for the first time in seven months in May.Market sentiment was also dampened after Federal Reserve Chairman Ben Bernanke said Wednesday the central bank could begin tapering its bond-buying program in the "next few meetings”. On the Comex division of the New York Mercantile Exchange, silver futures for July delivery traded at USD22.28 a troy ounce during European morning trade, down 0.85% on the day. Comex silver prices fell by as much as 2.2% earlier in the session to hit a daily low of USD21.92 a troy ounce, the weakest level since May 20. Silver prices were likely to find support at USD21.13 a troy ounce, the low from May 20 and resistance at USD23.12, the high from May 20. Data released earlier showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April. The disappointing data added to lingering concerns over a slowdown in the world’s second largest economy. Prices came under additional pressure after Federal Reserve Chairman Ben Bernanke said Wednesday the bank could begin tapering its bond-buying program in the "next few meetings”. In testimony to the U.S. Joint Economic Committee on Wednesday, Bernanke said a decision to scale back the Fed’s asset purchase program could be taken in the "next few meetings" depending on economic data.