MARKET OUTLOOK OF BULLION FOR 02 AUG 2016

Gold:  Gold was little changed on Monday, hovering just below the prior session's near three-week top as investors cut expectations for a U.S. interest rate hike in the near term. Palladium and platinum, however, fared better, hitting their highest in more than a year on improved investor sentiment. The U.S. Federal Reserve gave no hints of any near-term interest rate rise as some had expected it to at its monthly policy meeting last week. Early on Monday, New York Fed President William Dudley said the central bank should be cautious on interest rate increases due to lingering risks to the U.S. economy. Markets will closely monitor this week's data, which includes the monthly non-farm payrolls report on Friday.

Outlook: We expect gold prices to trade negative on the back of the chance of U.S. monetary policy being tightened before the end of the year.

	R2	R1	S1		S2	TREND
GOLD	31850	31750	31600		31500	SIDEWAYS

Silver:  Silver touched a three-week high of $20.64 an ounces, and is up 47 percent since the start of the year, outpacing gains in the rest of the precious metals complex.

Outlook:  We expect Silver prices to trade negative on the back of the chance of U.S. monetary policy being tightened before the end of the year.

	R2	R1	S1		S2	TREND
SILVER	48600	48450	48100		48000	SIDEWAYS