WEEKLY BULLION OUTLOOK FOR 19-23 SEP 2016

yesterday’s call update:  

gold rocks hit all 31160 made high of 31160

silver rocks hit all 45950 made high of 46065

last weekly gold sell call hit all tgt 31000 

SELL GOLD OCT @ 31100 SL 31350 TGT 30850-30700

SELL SILVER  @ 45500 SL 45800 TGT 45200-45000

Gold: 

Gold trading range for the day is 30574-31346. Gold prices dropped as investors digested the release of a host of U.S. economic data. Data released earlier showed that retail sales in the U.S. declined for the first time in five months, fueling concerns over the economic outlook. SPDR gold trust holdings dropped by 0.35% i.e. 3.27 tonnes to 932.22 tonnes from 935.49 tonnes. 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. Furthermore, ADX indicator is trading below 25 which indicates lack of strength. 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 long liquidation as market has witnessed drop in open interest by -2.86% to settled at 7706 while prices down -128 rupee, now Gold is getting support at 30742 and below same could see a test of 30574 level, And resistance is now likely to be seen at 31128, a move above could see prices testing 31346.

	R2	R1	S1		S2	TREND
GOLD	31100	31000	30800		30600	BEARISH

Silver: Silver trading range for the day is 44872-46454. Silver recovered to end with gains after prices slipped as the dollar and equities edged upwards, curbing the metal's demand ahead of Fed meeting. The Commerce Department said that retail sales dropped 0.3% from the prior month, compared to the forecast for a decline of 0.1%. The number of people who filed for unemployment assistance in the U.S. last week rose less than expected. MCX Silver

prices observed breakout of its Falling channel pattern at 45850 levels & trading in a consolidation on hourly time frame. Furthermore, MCX Silver prices are trading above its 21 HEMA on daily 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 46400 levels in few trading sessions. 

Outlook:  Technically market is getting support at 45255 and below same could see a test of 44872 level, And resistance is now likely to be seen at 46046, a move above could see prices testing 46454.

	R2	R1	S1		S2	TREND
SILVER	46200	46000	45350		45000	BEARISH