MARKET OUTLOOK OF BULLION FOR 05-06 AUG 2016

Gold:  Gold: Aug. Gold prices have retraced from its swing highs at 31946 levels over the past two sessions. Areas between 31500—31450 are the immediate support zones for the counter. Momentum above 31660 will trigger a bounce towards 31745/31880 levels in the counter. Until then prices will trade between 31660 to 31450 levels.

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	31900	31870	31600		31500	SIDEWAYS

Silver:  Silver prices have bounced after testing its immediate support around 47000 levels today. Intraday view though will stay negative until prices trade below 47633 levels. Sustenance below 46950 will open downside targets of 46775/46563 levels for Silver. A daily close above 47633 will trigger a retest of 48240—48450 zones.

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	47600	47400	47200		47000	SIDEWAYS