GOLD:
RESISTANCES : 30150/30700 29840/29960
29360/29600
SUPPORTS : 29120/29020 28590/28380
28270/28040
“BUY ABOVE
28800, TGT 29100, SL 28650”
“SELL Below
29100, TGT 28900, SL 29500”
Gold prices eased in Asian trading hours
and are trading near $1252/ounce after ending 1.4 % overnight. Prices tested
fresh four week high yesterday as the oil prices continued to surge ahead of
the meeting between OPEC and Russia in Doha. Meanwhile, the International
Monetary Fund (IMF) had cut its growth forecast for 2016 on Tuesday, citing an
extended period of slow growth that has made the global economy vulnerable to
further instability. It now sees the global economy expanding at a rate of 3.2
percent this year, down from its previous forecast of 3.4 percent. Lower growth
forecast was already being expected by the markets and this was also one of the
factors for the rally in gold over past few days San Francisco Fed President
John Williams, said in his comments that he expects two – three rate hikes this
year and when it happens the markets are likely not to go volatile. SPDR Gold
Trust, the world's top gold-backed exchange-traded fund, said its holdings fell
0.33 percent to 815.14 tonnes on Tuesday. Given the high probabilities of rate
hikes from Fed the rally in gold is likely to run into resistance shortly , at
the same time as the ETF flows have also started to consolidate we might see
gold prices nudging lower from current levels. For the day we therefore
recommend a sell in gold.
SILVER:
RESISTANCES : 40100/40600 39200/39580
38200-38500
SUPPORTS: 37850/37500/200 36800/36500
36100/35300
“BUY Above
38500, TGT 38800/39200, SL 38150”
Silver prices continued to march higher
and ended the session with 1.5 % gains. The rally in the base metals and the
precious metals segment supported the positive momentum in silver that has led
to bring the gold – silver ratio below 78 for the first time in more than a
month. In the data released today China’s March US dollar-denominated trade
balance was at $29.9 billion, compared to the forecasted $30.2 billion, and
February’s $32.6 billion. For the day we expect prices to trade within a range
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