Weekly Bullion Update : For next week Gold support at 51200 and 50600 Says Mr. Anuj Gupta, IIFL Securities
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Below is Weekly Bullion Update by Mr. Anuj Gupta, Vice President, IIFL Securities
Last week we have witnessed that MCX Gold increased by 2.56% and closed at 51917 levels. But in the spot market it corrected by 0.88% and closed at $1810 levels. It made a low of $1784.20 levels.
Indian Govt imposed 5% import duty on gold and we have seen sharp appreciation in domestic gold, how ever in international market it hit the 6 month low levels. Both the market were traded on different direction as per their own factors.
Last week we have also noticed weak US GDP data put pressure on commodity prices due to fear of recession and expectation of low demand.
Mcx Silver prices corrected by 3.71% and touched almost 2 year low level of 57537 levels. In international market it breached strong support of $20 and closed at $19.80 levels which is also 2 year low levels.
We have witnessed weakness in all commodities including metals, agri commodities, energy products due to the fear of recession and low demand.
For next week Gold support at 51200 ($1790) & 50600 ($1775). Resistance at 52500 ($1820) & 53100 ($1835)
Silver may found support at 56500 ($19.00) and resistance at $60000($20.80)
Here traders can trade based on the technicsl levels. They can buy on support levels and sell on the resistance levels.
One can buy Gold around 51200 levels with the stoploss of 50600 and for the target of 52500 to 52700 levels.
They can go for sell in silver around 59000 levels with the stoploss of 60000 for the target if 57000 levels.
The key factor behind the correction in gold is the Fed, which has been rapidly tightening monetary policy to fight the highest inflation.
Weak US data front, in front of Unemployment and inflation may trigger recession. U.S. manufacturing activity falling to a two-year low in June, following a report earlier in the week that showed that June consumer confidence at its lowest in 16 months.
We are expecting that these data's are positive for the yellow metals but now investors are not showing any strong conviction of this formula now a days.
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