Bullions traded continuously in the positive range for the third day on the pessimist economic situation. ECB decided to lend euro-area banks 49.8 billion euros ($71.7 billion) in emergency six-month cash to ease tensions on financial markets.
Bank of America Merrill Lynch raised its 12-month gold forecast to $2,000 an ounce, citing an increased chance of a third round of so-called quantitative easing.
Gold traded continuously in the positive range for the ninth consecutive day making all time high of $1815/oz where as MCX Gold traded till 26450.
After ranging for the highest daily change in Holdings since May 25 Last year, SPDR reduced its holdings at near record of 1296.898 tonnes today where as iShare Silver Holdings remained at 9890.74 Tonnes.
All time high price of Gold as well as rising Silver prices may result investors to shift portfolio from equity to commodities increasing the metal demand. It is expected that precious metal will continue rising but this time Silver may take the lead.
Gold: S1 26130, S2 25950, R1 26500 R2 26620
Silver: S1 58200, S2 57300 R1 59500 R2 60300
Courtesy: Edelweiss Comtrade Limited Research
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