Below is Weekly Bullions Update by Mr. Anuj Gupta, Vice President, IIFL Securities
Last week we have seen that Gold prices has recovered from lower levels and closed on a positive note.
Mcx gold closed higher by 1.07% at 50644 levels. It made a low of 49703 levels. Spot Gold closed higher by 1.15% at $1726 levels. It made a low of $1680.20 levels.
We have seen negative trend in silver prices on the back of low industrial demand and weakness in industrial metals.
Mcx Silver prices corrected by 0.82% and closed at 55131 levels. Spot silver corrected by 0.68% and closed at $18.56 levels.
Last week we have seen that ECB increased interest rate by .50% and we have seen correction in dollar index and US bond yield.
We have also seen weak US unemployment data put pressure on dollar and positive for Bullions.
Next week we are expecting a positive trend may be seen in gold and silver prices.
Gold support at 50200 ($1680)
And next support at 49700 ($1650)
Resistance at 51000 ($1740), and next resistance at 51500 ($1770) levels
Silver support at 54000 and than 52800 levels. Resistance at 57000 and than 58500 levels.
We are recommending buy in gold around 50200 with stoploss of 49700 for the target of 51000 and than 51500 levels.
They can also go for buy in Silver buy on dips at 54000 with the stoploss of 52800 for the target of 57000 and than 58000 levels
Gold may test $1740 levels and Silver may test $19.20 levels very soon .
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