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Below is Weekly Bullion Outlook by Mr. Anuj Gupta, Vice President, IIFL Securities

Last week as expected we have seen that gold and silver prices corrected sharply due to strength in dollar and rising US bond yield. Dollar index test the high of 109.97 levels which is more than 20yrs high levels.

Mcx gold corrected by 1.70% and closed at 50368 levels. Spot gold corrected by 1.46% and closed at $1711 levels. 

Mcx silver corrected by 4.93% abd closed at 53022 levels. Spot silver corrected by 4.48% and closed at $18.03 levels.

We are expecting that there is a 50% to 55% chance that the Fed may impose a third straight rate hike of 75 basis points in its next meeting.
 
We have also observed that some relief came after after the the U.S. Labor Department reported a slightly higher-than-expected unemployment rate for August in its non-farm payrolls report, despite citing more new jobs for the month than expectation. 

This is impacting positive for the commodity market and we have seen a recover in gold and silver from lower levels. 

Now we are expecting we may seen some relief from gold and silver correction. 
Technically both are now in oversold zone and indication a short covering may seen in the prices in next week.
 Fundamentally the movement is depending upon fed decision.

For next week gold may found support at 49800 ($1680)and 49300 ($1650) levels. Resistance may face at 50700 ($1735) and than 51300($1760) levels.

Silver may found support at 51800 and than 50000 levels. Resistance may face at 54500 and than 56000 levels. 

We are expecting a reversal as short covering may seen in gold and silver prices. Traders can buy gold around 49700 to 49900 levels with the stoploss of 49300 levels for the target of 50800 levels and 51000 levels. They can also go for buy in silver at 51500 to 51800 with the stoploss of 50000 for the target of 54000 to 54500 levels. Gold may test $1740 levels and Silver may test $18.70 levels very soon. Buy on dips is recommending for the next week.

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