WEEKLY BULLION OUTLOOK FOR 16-23 DEC 2016

SELL GOLD FEB BELOW 27000 SL 27250 TGT 26780-26650.

SELL SILVER MAR BELOW 39100 SL 39600 TGT 38850-38550.

Gold:  Gold trading range for the day is 26607-27607. Gold prices fell as Fed said it may need to hike rates three times in 2017 as it made a widely expected nudge up in its policy rate. Federal Reserve provided guidance of as many as three increases next year, with investors focused on plans by Trump to cut taxes. SPDR gold trust holdings dropped by 0.84 i.e. 7.11 tonnes to 842.33 tonnes from 849.44 tonnes.

Outlook: . Technically market is under fresh selling as market has witnessed gain in open interest by 5.23% to settled at 6462 while prices down -568 rupee, now Gold is getting support at 26813 and below same could see a test of 26607 level, And resistance is now likely to be seen at 27313, a move above could see prices testing 27607.

	R2	R1	S1		S2	TREND
GOLD	31000	30650	30500		30000	SIDEWAYS

Silver: Silver trading range for the day is 37700-42134. Silver dropped as the dollar surged to its highest in 14 years after the U.S. Federal Reserve raised interest rates. Fed signalled a faster pace of increases in 2017 as central bankers adapted to the incoming Trump administration's promises of tax cuts Holdings at ishares silver trust dropped by 0.70% i.e. 73.74 tonnes to 10534.54 tonnes from 10608.28 tonnes

Outlook:  Technically market is getting support at 38497 and below same could see a test of 37700 level, And resistance is now likely to be seen at 40714, a move above could see prices testing 42134.

	R2	R1	S1		S2	TREND
SILVER	44250	44100	44000		43750	SIDEWAYS