Bullion continued surging as mounting concern about debt crises and slower economic growth spurred investors to sell equities and seek the perceived safety of bullion and Treasuries.
As per WGC, Global gold demand fell 17 percent in the three months from April to June to 919.8 tonnes versus the year‐earlier period, Interest in gold‐backed exchange‐traded funds fell particularly sharply, down 82 percent to 51.7 tonnes from 2010's extremely high levels. Central banks were net buyers of gold for the second successive quarter, adding 69.4 tonnes to their reserves on a net basis.
Gold made the lifetime high of $1829 where as Silver once again headed near $41 giving rise to expectation of $43. At the domestic front Gold made the landmark of 27175 where as Silver touched 61600.
SPDR Gold holdings increased by 9 tonnes stood at 1271.985 tonnes where as iShare silver holdings increased by 21 tonns standing at 9727.10 tonnes.
With the global equities touching the grounds investors are finding safe heaven avenues resulting treasuries and Bullions to range sky. It is expected that the prices may continue ranging high with Gold being $1900 and Silver being $41.80.
Gold: S1 27000, S2 26800, R1 27500 R2 28000
Silver: S1 60800, S2 60000 R1 62000 R2 63000
Courtesy: Edelweiss Comtrade Limited Research
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