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Published on 5/11/2022 12:42:42 PM | Source: IIFL securities Ltd

Weekly Gold, Silver, Crude Oil Outlook By Mr. Anuj Gupta, IIFL Securities

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Below are Views on Weekly Gold, Silver, Crude Oil Outlook 05 November 2022 By Mr. Anuj Gupta, Vice President, IIFL Securities

Last week we saw a sharp recovery in gold and silver. Gold increased and trading 3 week higher by 1.29% and closed 50880 levels on mcx. Silver prices also increased sharply and trading higher at 4 week's by 5.20% and closed at 60495 leveld. In international market gold is trading around $1685 levels and silver is trading at $20.80levels.

Weakness in dollar again major currency is giving support to gold and silver. China's zero covid policy increase sentiments of increase demand for the metals and bulliins. Central bank have also added gold in therir reserves. They buy gold in Q3, with purchases estimated at a quarterly record of nearly 400 tonnes; up 300% y-o-y. Central Bank of Turkey remained the largest reported gold buyer this year, adding 31 tonnes in Q3. Its gold reserves is now at 489 tonnes and year-to-date it has added 95 tonnes.

The Central Bank of Uzbekistan bought another 26 tonnes in Q3, while the Qatar Central Bank was also a significant buyer in Q3, having bought 15 tonnes.

The Reserve Bank of India also bought 13 tonnes in July and 4 tonnes in September, pushing its gold reserves to 785 tonnes.

Global demand for gold has returned to pre-pandemic levels, strong recovery in urban Indian demand with 17% YoY growth in demand to 146 tonnes.

Physical Demand may lead the rally in gold and silver prices. 

Technically gold and silver are looking positive as we are expecting from this diwali.
Gold support at 50500 ($1665)and them 50200 ($1640)levels, resistance  at 51400 ($1700) and then 51800 levels ($1730). Traders can buy gold with the stoploss of 50400 for the target of 51400 to 51600 levels. 

Silver has a support at 57500 and then 55800 levels, resistance at 63000 and then 65500 levels. One can go for buy in silver with the stoploss of 57500 levels for the target of 63000 levels. 

Brent crude oil also increased by 3.11% and closed at 98.75 levels per barel. China demand increased the optimism in crude oil prices. Technically it is in positive trend and may trade  higher in the next week. It may test $100 per barell ver soon.

 

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