Gold and Silver Futures, Commodity Market Outlook: Nirmal Bang
Gold declined to trade below $900/oz on Wednesday (0830 IST), having risen to its strongest in a week the previous day, as the dollar gained against the euro, with softer oil prices also adding to the selling pressure of the gold.
Spot gold was quoted at $896.80 /oz, up $1.35 from New York's notional close. The dollar gained against the euro aided by Fed Chief Ben Bernanke’s statements that the U. S. economic contraction may be easing and reports of services industries shrink at a slower pace in April.
Gold was not able to breach the crucial resistance of $918. We recommend selling gold on rallies during the day.
Silver appears bullish on expectations of improvement in industrial demand and strength in base metals. We recommend going long in silver for the day.