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Below is Bullions: Weekly commentary commentary by Mr. Anuj Gupta, Vice President, IIFL Securities

Last week we have observed that mcxGold prices corrected by 1.60% and closed arpund 50820 levels. In international market it recovered from $1805 levels and closed at $1840 levels.

Last week Fed increased interest rate by 0.75% and expecting to increase more interest hike in future. Global equity Markets are reacting negative on this instance as fear of recession may be seen in the global.

Howevere Gold and silver are taking positive cues from it and showing positive momentum. Safe haven demand on recession may be seen in yellow metals. 

For next week we are expecting that It may trade higher. 

Gold strong support at 50400-50500 ($1810-$1805) levels and 49800 ($1770-1760) levels as a strong support zone.  resistance observed at 51600 -51700 ($1880-$1900) levels.

Silver strong support at 59500 -60000 levels and resistance at 62500 to 63000 levels

We are recommending buy in gold on any dip near 50500 levels with the stoploss of 49800 levels for the target of 51500 to 51700 levels. Trading and closing above 51700 may lead the rally towards 52300 to 52500 levels ($1930-$1950).

They can also go for buy in silver around 60000 levels with the stoploss of 58200 levels for the target of 62500-63000 levels ($22.20 to $22.50)
Trading and closing above 63000 may lead the rally towards 65000 to 67000 levels.

Depreciation kn rupee and weakness in equity market supports the yellow metals.

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