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Below the view on Weekly Gold, Silver By Mr. Anuj Gupta, Vice President, HDFC securities

Last week we saw that gold increased by 0.17% and closed at 59527 levels while Silver price corrected by 2.13% and closed at 72478 levels. 

Safe haven demand due to Downgrade rating of US is providing suppprt to the gold prices however down grading rating to chine by Morgan Stanley putting pressure on Metals. 

In international market gold is trading at $1942 per ounce and silver is trading at $23.62 levels.

Higher crude oil prices 
Increased after top producers Saudi Arabia and Russia extended supply cuts through September, adding to undersupply concerns was also the reason to supportive for the gold.

Uncertainty and safe haven demand will play the major role for further movement in the gold. 

Technically golf has a strong support at 59000 ($1920) and then 58500 ($1890) levels while resistance at 59800 ($1960) and the 60300 ($1980) levels. 

Traders can go for buy in gold around 59000 levels with the stoploss of 58500 levels for the next target of 59800 and then 60000 levels for the next week.

Silver Support at 71000 ($22.50) and then 68000($21.50) levels while resistance at 74000($24.50) and then 76000 levels ($25.50). 
Technically We are expecting it may recover and may test 74000 levels very soon.

Crude oil prices are expecting to rise further due to supply crunch and may test $88 to $90 per barell levels.

Saudi Arabia on Thursday extended a voluntary oil production cut of 1 million barrels per day to the end of September, keeping the door open for another extension. Russia has also elected to reduce its oil exports by 300,000 barrels per day next month.

Due to this cut anticipate a market deficit of more than 1.5 million barrels per day (bpd) and demand could grow by 2.4 million bpd in the coming time.
 

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