BULLION ANALYSIS FOR TODAY 28 APRIL 2016

GOLD: SILVER: RESISTANCES :30150/30700 /29840/29960 RESISTANCES : 42500/43050/ 41300/41760 SUPPORTS : 29260/29050/28960/28710 SUPPORTS : 39850/39150 38500/37950 BUY Above 29450, TGT 29590/700, SL 29260 BUY ABOVE 40900,TGT 41300 SL 40600 SELL Below 28950, TGT 28800/720 SL 29130 SELL BELOW 39700, TGT 39100, SL 40000

Gold : prices reversed their gains after the FOMC policy statement signaled a possible rate hike in June. Prices slipped lower after testing $1251/ounce in yesterday’s session and tested $ 1238/ounce in early Asian hours, before recouping the losses after the bank of Japan monetary policy statement today morning. That Fed statement largely mirrored the one issued after the Fed's last policy meeting in March, with the U.S. central bank's rate-setting committee describing an improving labor market but acknowledging that economic growth seemed to have slowed. It also said it was closely watching inflation and noted that global economic headwinds remained on its radar, though it made no mention of the risks they posed, as it had last month.

Morning looses were seen reversing after the Bank of Japan did not expand monetary stimulus in its policy meeting today, as Governor Haruhiko Kuroda and his colleagues opted to take more time to assess the impact of negative interest rates. The announcement came as a surprise to the markets given the strength in the yen; however the central bank opted to wait for more time before any fresh dose of stimulus.

Silver : prices ended higher by around 1 % ahead of the FOMC policy statement. The positive set of data releases from US also lifted the sentiments. Goods trade balance stood at -56.9 billion, above the forecast of -62.5 billion. Pending home sales month-over-month in March gained 1.4 percent, besting the estimate of 0.3 percent. Markets will watch for advance GDP estimates from US today for fresh cues. For the day we expect a range bound trade in silver.