Bullion continued loosing ground carrying the effect of CME margin requirement hike as well as expectation that Fed will take strong steps to diagnose the economy.
Gold fell, heading for the biggest three‐day drop in almost three years and touching almost $1700 indicating $1680 being next support. Silver revert back from $38.70 on the back of weaker economic indicators gaining around 2.52% at the later sessions.
Domestic Bullion counter continued mimicking global benchmarks. Gold at the MCX front thrashed till 25500 but recovered at the later sessions trading near 26500 with the weaker US economic releases. Silver also lost till 58800 but recovered till 62000.
Fearing sharp correction in the prices ETFs continued selling. SPDR has reduced its Gold holdings by 27.255 tonns to 1232.314 tonns. iShare Silver Trust has increased its Silver Holdings by 73 tonns to 9836.18 tonns.
Considering yesterday’s price reverse as well as Bernanke’s indication of not introducing any Quantitative easing it expected that prices may turn upwards once again but wait for the resistances to be cleared.
Gold: S1 25900, S2 25700, R1 26560 R2 26720
Silver: S1 60300, S2 59600 R1 63800 R2 65000
Courtesy: Edelweiss Comtrade Limited Research
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