Trading strategy for Gold and Silver Futures, Commodity Market Outlook

goldPrecious metals jumped in the last trading session against a backdrop of fall in dollar against the Euro which led to some fresh buying by investors.

MCX Gold rose by Rs. 90 while COMEX Gold rose by $9 and closed the day at $961.5.

The yen fell broadly on Thursday as a recent spike in U. S. bond yields and strong U. S. economic data attracted Japanese investors into overseas assets, while the dollar also remained pressured against the euro.

Gold prices have been moving up taking cues from weaker dollar. After yesterday’s rally, we may see some profit booking taking place but fundamental weakness in dollar may keep bulls active in the market.

Silver looks strong due to expectation of improvement in industrial demand. We recommend buying silver at dips.

Gold Prices witnessed an upside in previous Session. The RSI and +DI indicate bullishness in Gold above 14500 levels, as gold maintained above 14500 levels at closing during the week. Thus, one can buy Gold at dips around 14660-720 levels during the day, targeting 14800 levels for the day. However, resistance can come in at 14800 levels, breaching this levels gold can touch 14900-950 levels.

Silver is bullish as it has shown strength by breaking the resistance at 23200 levels. The rising ADX and +DI indicate bullish sentiments in silver. Thus, one can buy silver at every dips, targeting 24000. For the day, one can buy silver around 23500-600, targeting 23800 and 23950 levels. Breaking 23500 on downside during the day can push silver to 23350 levels, which can be looked as buying opportunity.

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