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Below is Weekly Bullions Update by Mr. Anuj Gupta, Vice President, IIFL Securities

Mcx gold corrected by 0.42% and closed at 50623 levels and on spot market it corrected by 0.72% and closed at $1826 per ounce levels.

Mcx Silver prices corrected sharply by 1.95% and closed at 59749 levels. In spot market it corrected by 2.57% and closed at $21.11 per ounce levels.

Expectation of more hike in interest rates putting some pressure on gold and silver prices, however weakness in ruppee due to strength in dollar is supporting for gold and silver prices. Investors are now in silent mood in this volatile session and we are not seeing any aggressive trading activity in the markets.

Weak US consumer sentiments data and fear of recession may support the gold and silver prices. 

Technically gold find support at $1810 (49900) levels and than strong support at $1770 levels (49200) levels. Resistance at $1855 (51300) levels and $1880 levels (52000).
51300 levels.

Silver is taking cues from weakness in  base metals prices as lower demand expectation due to fear of the recession.

Silver can find suppprt at $20.50 (58500) levels and next support at $20.00 (56000) levels. Resistance at $21.50(62500) levels and $22.00(64000) levels.

Gold is supposed to be a hedge against inflation and it typically rallies when investors become worried about a reduction in the purchasing power of the dollar.

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