13 April 2016


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.
RESISTANCES : 40100/40600 39200/39580 38200-38500
SUPPORTS: 37850/37500/200 36800/36500 36100/35300
“BUY Above 38500, TGT 38800/39200, SL 38150”
“SELL Below 37800, TGT 37500/ 37200, 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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