BULLION OUTLOOK FOR 18-19 OCT 2016

SELL GOLD DEC 29850 SL 30000 TGT 29700-29550.

SELL SILVER DEC 42300 SL 42550 TGT 41980-41600.

Gold:  Gold trading range for the day is 29546-29814. Gold prices ended with small gains lifted by steady flows into exchange-traded funds and a dip in the dollar after touching seven-month highs. Positive economic data from the U.S. usually puts pressure on bullion prices as investors raise bets on an interest rate hike. Demand for gold from top consumer China will remain strong at around 900-1,000 tonnes next year.

Outlook: Technically market is under short covering as market has witnessed drop in open interest by -5.33% to settled at 7796 while prices up 49 rupee, now Gold is getting support at 29626 and below same could see a test of 29546 level, And resistance is now likely to be seen at 29760, a move above could see prices testing 29814.

	R2	R1	S1		S2	TREND
GOLD	30000	29900	29700		29500	SIDEWAYS

Silver:  Silver trading range for the day is 41466-42192. Silver traded in range amid heightened expectations for a U.S. rate hike later this year weighed. The Federal Reserve is "very close" to its U.S. employment and inflation targets, Fed Vice Chair Stanley Fischer said. The Fed’s next meeting is in November, but a rate hike ahead of the presidential election is seen as unlikely

Outlook: Technically now Silver is getting support at 41668 and below same could see a test of 41466 level, And resistance is now likely to be seen at 42031, a move above could see prices testing 42192.

	R2	R1	S1		S2	TREND
SILVER	42500	42300	42150		42000	SIDEWAYS