Below are Views on Weekly Gold, Silver, Crude Oil Outlook By Mr. Anuj Gupta, Vice President, IIFL Securities
Last week we saw a consolidation in Gold, silver and Crude oil prices. MCX Gold corrected by 0.78% and closed at 50,230 levels and in the international market it corrected by 0.74% and closed at $1,644.30 levels. MCX Silver prices were corrected by 0.23% and closed at 57,480 levels and in the international market it was corrected by 0.93% and closed at $19.22 levels. However Brent Crude oil increased by 0.73% and closed at $94.14 levels.
Adversely, We have seen a correction in the dollar index as it was corrected by 1.08% and closed at 110.66 levels against all major currencies. We have seen the statement from the FED that they may look for a slower hike in interest rates in the coming policy meeting. China has sold the US dollar last week and also other economies may consider the hike in interest rates. These steps are looking negative for the dollar. Expecting that the correction in the dollar may give optimism for the commodity market.
Last week crude oil prices eased off after top crude importer china widened its covid-19 curbs. China has been sealing up buildings and locking down districts after China registered 1,506 new covid infections.
For the next week Gold has a support at 50,000 ($1625) and then 49,700 ($1610) levels, resistance at 50700 ($1665) and then 51000 ($1685) levels. Silver has a support at 56500 ($19.00) and then 54000 ($18.50) levels, resistance at 58500 ($19.80) and then 60000 ($20.50) levels. We are expecting a consolidation between support and resistance levels may be seen in gold and silver prices. We are advising buy in gold and silver around support levels.
for the crude oil it has a support at $90 and then $87 levels, resistance at $95 and then $98 levels. We are recommending a rise in crude oil due to covid concerns and higher crude oil inventories in the US
Above views are of the author and not of the website kindly read disclaimer