MUMBAI (Commoditiescontrol) - Spot gold continued its uptrend which started last Friday (May 31 st).
Since then gold was traded in the region of USD 1274 and USD 1348.90 per oz and finally settled above USD 1340 per oz.
Gold moved higher as the US adds lesser than anticipated jobs in the month of May and revised downwards its job numbers for the month of March and April, signaling slowdown in US economy.
Almost all economists/investors were of the view that the Fed may cut its interest rates at least by 25 bps in July or even before that.
Earlier this week the US ISM manufacturing data showed signs of weakness in the economy along with other data, and this appears to be as a result of increased tariffs by US to Mexico, withdrawal of GPS status to India and uncertainty over trade war with China.
In the Treasury market, yields, which has witnessed steep decline during last week, signaling US economy is on the verge of slowdown, which could possibly result in recession or closure to that.
The 2-year yield which closely reflects expectations for Fed policy, last week fell to 1.77%.
The 10-year yield, which influences mortgages and other loans, fell to a low of 2.059%. Technically gold is overheated that needs some sort of correction during this week with first major hurdle around USD 1355-1357 per oz and then at USD 1365 per oz.
Support is seen at around USD 1330-1325 and then at USD 1319-1315 per oz and unlikely to drop further. Buy on dips around the mentioned support levels is the preferred strategy as the overall trend is up.
MCX Gold Aug’2019
Gold last week touched the high of INR 33040
In the last two weeks gained by about INR 1500 per 10 gram
Since it has moved without any significant retreat expect prices may cool down in the near term towards the support levels of INR 32500-32300 levels, which should be considered as good levels to enter long
Gold has the potential to touch as high as INR 34000 and above before the expiry of August contact (5 th of august).
Silver Spot
International silver spot closed the week above USD 15 per oz, signaling room for further upward bias. Strong support is at 14.85-14.70 and unlikely to drop further.
Silver is likely to move higher towards USD 15.40-15.53-15.65 per oz going forward.
Buy on dips preferred as downside is limited.
MCX July-2019
Silver closed the week around 37350 levels per kg.
It is likely to test 38000 in the near term.
Possibility of silver moving higher in excess of 40000 (may be closer to 41500-42000) not ruled out in the next one to two months time period considering the current fluid economic scenario in which silver may emerge as alternative investment demand.
(By Commoditiescontrol Bureau)
0 Comments 
Post Comment 
