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GOLD

Gold pulled back significantly after testing the 61651 high. The U.S. dollar saw a one-month peak and recorded its largest weekly gain since February, and this pushed gold prices from the weekly resistances. The investors are comfortable with the aspect of gold as a safe-haven asset, on concerns about the U.S. debt ceiling and monetary policy. Prices are expected to consolidate for a while, and then move upwards.

Technical Outlook

MCX gold revered after establishing a high of 61651, yet ended with a weekly gain of 0.43 percent. The direction remains positive and June gold can experienced a higher move towards the see the 61550-61600 region, as long as closes above the 60000/60350 support region.

SILVER

The negative data has been priced in quite aggressively and with no major release during the early part of the week, the importance for wealth preservation shall continue therefore expecting a pull back soon.

Technical Outlook

MCX gold revered after establishing a high of 61651, yet ended with a weekly gain of 0.43 percent. The direction remains positive and June gold can experienced a higher move towards the see the 61550-61600 region, as long as closes above the 60000/60350 support region. Silver had broken significantly to the downside during the week, slicing through the 73000 level, but closed slightly above this. Still, there is no change in the broader term direction. The tendency to test the 71500 support can be expected. However, the markets are oversold and the broader view remains positive, therefore look for initiating long positions if breaks above 73780. Weekly Report: Metals & Energy Precious Metals GOLD Gold pulled back significantly after testing the 61651 high. The U.S. dollar saw a one-month peak and recorded its largest weekly gain since February, and this pushed gold prices from the weekly resistances. The investors are comfortable with the aspect of gold as a safe-haven asset, on concerns about the U.S. debt ceiling and monetary policy. Prices are expected to consolidate for a while, and then move upwards. 

Crude oil

Crude oil traded in a tight range with traders paying close attention to cues with respect to the global economic growth outlook for this year. There is no indication for easing of the tight supply situation and the front month derivative has stabilized a bit, after testing the 5550 level the week before. Hence we expect an attempt to recover from the current levels.

Technical Outlook

Oil was down 1.33 percent week on week. But there was a tendency to pull back every time the intraday lows were tested. The near term bearish indicators shall limit the upside moves but prices may not hold below the 5550/5500 level. In case of a recovery, May crude oil can witness an upward pull towards the 6000-6060 region.

Natural gas

The price behavior was slightly in favor of the bulls this time although sellers were active near the resistance levels. The peak summer approaches, so the demand prospects does not appear promising. The inventories are 33% above year-ago levels and 20% higher than the five-year average. The overall view remains negative.

Technical Outlook

Natural gas markets initially tried to rally a bit during the trading week, but then gave back the gains. The weekly candlestick being positive, there can be a pullback in coming days, but the broader term negative indicators shall continue limiting the gains.

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