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Below the "Quote on Gold and Silver" by Mr. Tejas Anil Shigrekar, Commodities and Currencies Senior Technical Analyst, Angel One Ltd

                                           Gold and Silver short term bull are in act

The US dollar's recovery has been ongoing and impressive, gaining strength over the past month, fluctuating within the range of 103.60 to 104.15. Notably, during the session on August 23rd, substantial resistance was encountered, creating a zone for profit booking for long dollar positions due to the resistance. Additionally, a bearish candlestick pattern emerged on the daily chart, likely influenced by treasury yields and central bank activities.

The bulls seeking safe havens have returned. During the Wednesday session, Gold prices experienced a rise of Rs 245 (0.42%) per 10 grams, while Silver maintained its position above the 74,000 mark, showcasing a robust rally of Rs 2022 (2.81%) per kilogram. In the NYMEX market, Gold and Silver reached USD 1920 (1%) per ounce and USD 24.36 (4%) per ounce respectively.

Looking ahead to the remaining sessions of August, our strategy anticipates the US dollar to trade within a sideways range of 102.20 to 100.80 levels. It's important to note the significant inverse relationship between the dollar and commodities. On August 23rd, the price of Gold triggered an isolated Steban arena, resulting in a four-day sideways band between 58,200 and 58,700 levels before closing above this range. This bullish movement is likely to persist towards the next resistance point at 59,300 levels, followed by a potential target of 59,700 levels.

Similarly, for Silver, given the current pattern, a bullish outlook is favored, with Gold prices leading the way and aiming for the next resistance levels at 75,100 to 75,900. As we monitor potential bullish movement, it's possible that minor corrections in the very short term could occur. These corrections could provide traders with opportunities to enter positions aligned with the bullish trend.

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