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Below are Views on Bullion Outlook By Mr. Anuj Gupta, Vice President, IIFL Securities

Last week we have seen that mcx gold prices corrected sharply by 2.10% and closed at 51479 levels Spot gold corrected by 3.02% and closed at $1746 levels.

Mcx Silver corrected sharply by 6.38% and closed at 55496 levels and in spot market it corrected by more than 8% and closed at $19.

Bullions were corrected after mixed data raises questions on whether the fledgling U.S. recession will deepen or the dollar will pick up steam again as the Federal Reserve weighs more outsized rate hikes.

The dollar index was boosted by 2.40% and closed at 107.84 levels on comments from Federal Reserve officials that the bank would stick to a sharp pace of rate hikes this year to bring down runaway inflation.

For the next week gold may find support at 51000 ($1730) and 50700 ($1710) levels. Resistance at 51800($1760) and 52200 ($1790) levels. We are recommending sell on rise in Gold around 51800 levels. But they can also buy around support levels at 51000 with the stoploss of 50700 for the target of 51800 levels which may work as a strong resistance levels for the gold.

Silver support at 54000 and than 52500 levels. Resistance at 57000 and than 59000 levels. Traders can go for sell in silver around 57000 levels

Trend of yellow metals are mixed. Fed interest point is negative for bullions, however geopolitical tension and inflation is positive for bullions. We may see both side movementum in yellow metals. Physical demand may emerge on lower levels in bullions.

Cost of mining of gold is increased by 7% year over year to $1173 an ounce in 2022. This increased due to increases in mining, labour, diesel, power, royalties, raw material, and transportation.

This will also impact positive for bullions.

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