BULLION OUTLOOK FOR 20-21 SEP 2016

YESTEDAY’S GOLD HIT TGT 30980 MADE HIGH OF 31050

BUY GOLD OCT @ 30850 SL 30650 TGT 31050-31200

BUY SILVER DEC @ 45950 SL 45650 TGT 46380-46850

Gold:  Gold trading range for the day is 30821-31021. Gold prices rose as the dollar slipped, with the market waiting for clues on the timing of a rise in U.S. interest rates, The Fed's two-day meeting starts on Tuesday, where policymakers will debate the U.S. economy and its ability to absorb a rate hike. The U.S. CFTC showing hedge funds and money managers cutting their net long positions in COMEX gold contracts in the week to Sept. 13.MCX Gold prices are trading in a falling channel formation on hourly time frame. On the other hand, prices have been trading below 50 HEMA on hourly chart. Looking at ADX, negative directional index (-DMI) is in domination position with rising average direction index. Moreover, Momentum Indicator RSI is trading below 50 levels on hourly time frame. For now we expect prices should move lower towards 30550 levels in the coming trading sessions.

Outlook: Technically market is under short covering as market has witnessed drop in open interest by -2.08% to settled at 7336 while prices up 90 rupee, now Gold is getting support at 30862 and below same could see a test of 30821 level, And resistance is now likely to be seen at 30962, a move above could see prices testing 31021.

	R2	R1	S1		S2	TREND
GOLD	31200	31100	31000		30750	BULLISH

Silver:  Silver trading range for the day is 45328-46624. The economic growth outlook also took a hit from other data showing a drop in manufacturing output last month. Silver prices remained supported as the U.S. dollar slipped amid expectations of no rate change from the Federal Reserve this week. Holdings at share’s silver trust gained by 0.29% i.e. 32.49 tonnes to 11305.47 tonnes from 11272.98 tonnes COMEX Silver prices observed breakout of its Rectangle pattern at $19.27 levels on hourly time frame. Furthermore, MCX Silver prices are

trading above its 21 HEMA on hourly time frame. Looking at ADX, Positive directional index (+DMI) is in domination position with rising average direction index. Moreover, Momentum indicator RSI is trading above 50 levels on hourly basis. For now we expect prices to move higher towards 46850 levels in few trading sessions.

Outlook:  Technically market is under short covering as market has witnessed drop in open interest by -10.32% to settled at 8367, now Silver is getting support at 45684 and below same could see a test of 45328 level, And resistance is now likely to be seen at 46332, a move above could see prices testing 46624.

	R2	R1	S1		S2	TREND
SILVER	46450	46300	46000		45800	BULLISH