22 April 2016

BULLION ANALYSIS FOR TODAY 22 APRIL 2016

GOLD:
RESISTANCES : 30250/30150/29960/29345  
SUPPORTS : 29140/29050 /28960/28710
BUY : Above 29590, TGT 29840, SL 29480
SELL :  BELOW 29400 TGT 29160/29050, SL 29550
SILVER:
RESISTANCES: 42500/41850/41760/40600
SUPPORTS: 40050/39150/38500/37950 /37550
BUY : Above 40700, TGT 40850/41200, SL 40300
SELL : Below 39500, TGT 39100/38800, SL 39950
GOLD: Gold on MCX settled up 0.14% at 29357 slipped from a five-week high as the dollar strengthened against the euro, but the metals were headed for weekly gains buoyed by a rally commodities. While Comex Gold hit a fiveweek high of $1,270.10 on Thursday, but pared some gains after the dollar regained ground versus the euro. Yesterday the euro reversed course to trade lower against the dollar on Thursday after traders saw potential for the European Central Bank to eventually increase its stimulus measures if necessary.Yesterday the ECB's Governing Council left its benchmark interest rate for the euro zone at a record-low of zero in a closely-watched decision in Frankfurt. At the same time, the ECB's deposit rate remained unchanged at Minus-0.4%, while its marginal lending facility rate also stayed unchanged at 0.25%.
In March, the ECB lowered the deposit rate, or the rate it charges on overnight, commercial bank deposits parked at the central bank, to its lowest level on record.
SILVER:Silver prices rallied to 11-month highs yesterday, breaching above Rs 41000 on MCX beforesettling lower around Rs40000 in late profit booking. Silver is up around 26% this year, compared to gold’s almost 19% rise. With around half of the industrial demand for silver coming from China, prices have been boosted by recent indications that China’s economy is stabilizing after a turbulent start to the year. Having said post a stellar rally the prices have run into technical resistance levels where some profit booking and fresh shorting is expected. For the day therefore we would look to trade silver as per the trading range with a sideways.