Below is the Quote on Gold/Silver By Mr. Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking Ltd
“As expected yesterday gold prices increased by 0.16% and closed at 51769 levels and silver prices closed on a flat note and closed at 68,967 levels. Weakness in dollar due to tension escalating between U.S. & China amid alarming increase in the covid-19 cases around the globe dented the hopes of a paced economic recovery. In international market gold is trading at $1959 per ounce and silver is trading at $27.24 per ounce. Weakness in dollar support the gold and silver prices. US Federal meeting would be the important event for further trend decider. The Federal Open Market Committee will provide its quarterly update on where it sees GDP, unemployment and inflation heading. It also will take up the issue of whether it should provide clearer guidance on what it will take to raise rates in the future, and it could switch its bond-buying strategy to go beyond supporting market functioning to one that backstops the broader economy as well. Expectations from the Fed have increased amid a stalemate in talks for fiscal relief and economic reports suggesting an uneven recovery from the coronavirus-induced recession.
Due to weakness in dollar we are expecting positive trend may continue in gold and silver. As for today traders can go for buy in gold at Rs 51,700 levels with the stop loss of Rs 51,400 levels for the target of 52,300 levels. They can also go for buy in Silver at Rs 68,600 levels, with the stop loss of 68,000 levels and for the target of 69,800 levels. In the Bullion index “Bulldex” traders can also go for buy at 16200 with the stop loss of 16050 and for the target of 16600. In international market gold may test $2000 per ounce and silver may test $ 28.50 per ounce soon.”
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