Gold and Silver Futures, Commodity Market Outlook: Nirmal Bang

GoldGold bounced to $910 per ounce on Friday (0830 IST) but was off a five-week high of $925.15 marked on the previous day, as its safe-haven allure waned on bets that global economic pain could be easing.

Spot gold was quoted $913.00 GMT, up 0.4 percent from New York's notional close of $909.05.

The dollar and the yen remained steady on Friday (0830 IST), after stress test results show none of the 19 U. S. banks examined faces insolvency, but some of the biggest need to raise more capital.

Silver climbed above $14 an ounce when the market opened on Thursday as uncertainties ahead of a stress test on U. S. banks boosted the safe-haven demand.

Fundamentally due to weaker dollar, you might see upside of a percent or half during the day in Gold, but we are not very bullish as the major reason for going long was uncertainty in financial markets which are now looking brighter than expected. Silver has witnessed a good rally so we expect silver prices to move down during the day.

Gold is facing a severe resistance at $920/oz and yesterday it breached $920/oz but couldn’t close above it. Technically one can buy Gold at $905 and book profits around $917-$918. Gold seems to have stuck in the range between $900- $920/oz.

Silver have taken a strong resistance at $14.15 and it has formed a double top pattern so we believe that after a good bull run the upside shall be capped in silver at $14.15.

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