Trading strategy for Gold and Silver Futures, Commodity Market Outlook

GoldPrecious metals slid in the last session, ending the day on a negative note against the backdrop of appreciation in dollar against the Euro.

Gold and Silver shed 2% and 4% respectively on COMEX.

The world's largest gold-backed exchangetraded fund, the SPDR Gold Trust, said holdings fell 1.53 tonnes to 1,132.50 tonnes as of June 3.

Gold ended lower in the last trading session due to sharp correction in dollar. Precious metals look weak for the day and we expect Gold to move sidewise to down during the day on the back of any further rise in dollar. We recommend selling Gold and Silver at every rise during the day.

Gold prices moved down in the later session yesterday, breaking the earlier Support at 14770. The RSI also has taken resistance at earlier peak and has crossed the MA on the downside. Thus the bias remains on the downside today. One can sell i Gold today at higher levels with Sl around 14940.

Silver has given a dark cloud cover candle right at the top of the trend. Silver breached the earlier top in first session and also breached the earlier bottom during the later session, which indicated trend reversal in Silver. Silver also breached the Support at 23800 (23.6% retracement). Thus, further downside can come in Silver to 23450 and next 23130. Therefore, one can short at higher levels during the day, targeting 23500-450.

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