Below is Weekly Bullions Update by Mr. Anuj Gupta, Vice President, IIFL Securities
Last week we have seen Mcx Gold prices were on a positive note up by 0.48% at 51874 levels. In international market it increased by 0.50% and closed at $1774 levels.
However we have seen negative closing in silver prices. Mcx silver down by 1.72% and closed at 57364 levels. In international market it closed down by 2.14% and closed at $19.88 levels.
Weakness in dollar and lower bond yield were supported to gold prices. Geopolitical tension between China, Taiwan and US is also playing major role for supportive for Gold.
However due to this tension we have seen lower demand of base metals and industrial metals put pressure during the last week, and we have observed that Crudeoil, base metals and silver corrected last week.
For next we are expecting a posoitive trend may seen in Gold and Silver prices.
Mcx Gold support at 51300 ($1755) and than 50800 ($1740) levels. Resistance at 52200 ($1790) and than 52700 ($1805) levels. Traders can by gold around 51300 levels with stoploss of 50800 levels for the target of 52200 and 52700 levels.
Silver support at 56500 ($19.50) level and 55800 ($19.20) levels. Resistance at 58000($20.20) and than 59000 ($20.60) levels. It will move between support and resistance levels and the trend of silver is sideways.
Physical demand of gold is starting to increase for up coming festival season.
Among the better-performing non-leveraged ETFs increased. the ETFMG Junior Silver Miners ETF, SILJ advanced 5.5%, the VanEck Vectors Gold Miners ETF GDXJ increased 5.5%, the Global X Silvers Miners ETF SIL rose 4.7%, and the VanEck Gold Miners ETF GDX gained 4.2%.
Meanwhile, the SPDR Gold Shares (GLD was 1.6% higher and the iShares Silver Trust (SLV was up 0.7% as Comex gold futures pushed 1.7% higher to $1,806.2 per ounce and Comex silver futures increased 1.2% to $20.1 per ounce.
Investors picked up precious metals as a traditional safety hedge with yields on benchmark U.S. Treasuries dipping from their highest level in over a week.
So the fundametls are supportive for the yellow metals, and technical structure suggesting optimism for the bullions. Gold may test $1820 and silver $21 level very soon .
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