BULLION OUTLOOK FOR 17-18 OCT 2016

SELL GOLD DEC  29750 SL 29900 TGT 29550-29400.

SELL SILVER DEC 42000 SL 42500 TGT 41850-41500.

Gold: Gold trading range for the day is 29349-29879. Gold fell as the dollar rose after U.S. economic data came in within expectations cementing assumptions of an interest rate increase by the Federal Reserve by year-end. Federal Reserve Chair Janet Yellen gave a broad review of where the U.S. economic recovery may still fall short. SPDR gold trust holdings gained by 0.40% i.e. 3.86 tonnes to 965.43 tonnes from 961.57 tonnes.

Outlook: Technically market is under long liquidation as market has witnessed drop in open interest by -0.25% to settled at 8235 while prices down -53 rupee, now Gold is getting support at 29503 and below same could see a test of 29349 level, And resistance is now likely to be seen at 29768, a move above could see prices testing 29879.

	R2	R1	S1		S2	TREND
GOLD	30000	29800	29500		29400	SIDEWAYS

Silver: Silver trading range for the day is 41252-42452. Silver prices dropped with market participants seeing further downside for the precious metal in the near-term amid US dollar strength. U.S. retail sales rebounded 0.6 percent in September while producer prices also rose broadly to record their biggest year-on-year increase since December 2014. Holdings at ishares silver trust gained by 0.32% i.e. 35.42 tonnes to 11268.35 tonnes from 11232.93 tonnes

Outlook: Technically market is under fresh selling as market has witnessed gain in open interest by 1.47% to settled at 16478 while prices down -69 rupee, now Silver is getting support at 41537 and below same could see a test of 41252 level, And resistance is now likely to be seen at 42137, a move above could see prices testing 42452.

	R2	R1	S1		S2	TREND
SILVER	42200	41900	41500		41000	SIDEWAYS