BULLION OUTLOOK FOR 25-26 OCT 2016

BUY GOLD DEC @ 29750 SL 29600 TGT 29880-30050.MCX

Gold:  Gold trading range for the day is 29624-29974. Gold prices slipped as the dollar strengthened on growing speculation that the U.S. Federal Reserve would hike interest rates in December. Recent positive economic data and comments from central bank officials have bolstered expectations of a rate hike. Hedge funds and money managers cut their net long positions in COMEX gold for the third straight week in the week to Oct. 18.

Outlook: MCX Gold price are trading in a consolidation range at 29800 levels on hourly chart. On the other hand, prices have been trading below 21 HEMA on hourly chart. In addition, COMEX Gold price has shown breakdown above its horizontal trend line support at $1265 levels. Moreover, Momentum Indicator RSI is trading below 50 levels on hourly time frame. For now we expect prices should move lower towards 29450 levels in the coming trading sessions.

	R2	R1	S1		S2	TREND
GOLD	30000	29900	29700		29600	SIDEWAYS

Silver:  Silver trading range for the day is 41547-42825. Silver prices gains tracking base metals prices despite gold dropped amid stronger dollar and rising expectations of a Fed rate hike. Fed only needs to nudge up interest rates despite being close to its targets, Bullard says. San Francisco Fed President John Williams said that "this year would be good" for a rate hike. BUY SILVER DEC ABV 42100 SL 41900 TGT 42340-42560.MCX

Outlook:  On hourly chart, MCX Silver prices are trading in rectangle pattern formation at 42000 levels. On the other hand, COMEX Silver prices are trading near its trend line support on hourly time. In addition, MCX Silver are hovering near its 21 HEMA on hourly time frame. Moreover, Momentum indicator RSI is trading in oversold zone on hourly basis. For now we expect prices to move higher towards 42650 levels in few trading sessions.

	R2	R1	S1		S2	TREND
SILVER	42600	42400	42000		41800	SIDEWAYS