Gold and Silver Futures, Commodity Market Outlook: Nirmal Bang

GoldGold rose on Wednesday as stress tests on U. S. banks underscored lingering uncertainties in the financial markets, bolstering the metal's safe-haven appeal. Gold traded higher in spite of a Wall Street rally ahead of Thursday's release of results of government stress tests on 19 large U. S. banks.

Spot gold was quoted at $909.85 an ounce, up 0.7% from New York's notional close. The world's largest gold-backed exchangetraded fund, the SPDR Gold Trust’s , holdings fell to 1,104.09 tonnes as of May 6, down 0.36 tonnes, or 0.03 percent, from the previous day.

The dollar fell against the euro ahead of a rates announcement from the European Central Bank on Thursday. The leaked bank stress test results suggest most banks were healthier than previously thought.

The bank stress test results in U. S. and rally in the commodities sparking inflationary concerns supported gold prices but we are not very bullish on Gold. We recommend selling gold at rise.

We believe expectation of improvement in the industrial demand is likely to support silver prices and it is expected to trade up during the day.

Gold we believe might test $914 and once it breaches that the next resistance is seen at $920.2. At these levels we recommend to book profits on long and one can go short with a stop loss of $927.

Silver looks very strong technically after and a breakout it was able to close above $13 and now it may test $14.64 on the upside.

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