Treasured metals remained lacklustre in Might and closed on a weak be aware for the second month in succession. The strengthening of the U.S. greenback together with the rise in U.S. treasury yields dented sentiment round treasured metals.
Consequently, Comex gold misplaced 3.3% in Might to shut at $1,848.4 an oz. Comex silver noticed a a lot deeper lower of 6.05% to settle at $21.69 an oz.
Mirroring the worldwide pattern, MCX gold futures fell 2.2% to shut at ₹50,847 per 10 gm. MCX silver futures dropped 5% to settle at ₹61,125 a kg, on the finish of Might.
The Comex gold value dropped under the decrease finish of the prior buying and selling vary of $1,880-$2,005. As anticipated, this breach triggered an additional slide, and the value examined the goal zone of $1,800-1,810 that was talked about final month.
Comex gold dropped to a low of $1,785 on Might 16 and has since recovered during the last couple of weeks.
The short-term outlook stays weak and a drop under $1,825 will verify the resumption of the latest downtrend. Except the value strikes above $1,925, a slide to $1,770-1,780 can be the popular outlook.
The value motion in Comex silver was in step with expectations. As noticed final month, the value dominated weak and fell to the goal vary of $20.40-20.50. After recording a low of $20.4 on Might 13, the value managed to get better some floor up to now few weeks.
The short-term outlook for silver stays weak and the value is prone to slide to the subsequent goal of $20.2-20.4. This view can be invalidated if the silver value closes above $23.5.
In sync with the worldwide pattern, MCX gold, too, dominated weak final month. The short-term outlook stays damaging and the MCX gold value might drop to ₹48,500-49,000 per 10 gm. Solely a transfer above ₹53,500 would invalidate the short-term damaging outlook.
As noticed final month, MCX silver remained weak and fell to the then talked about goal zone of ₹57,500-58,000. The short-term outlook stays weak and a fall to ₹57,000-57,500 seems seemingly. A fall under ₹60,500 would verify the short-term damaging outlook. Solely a detailed above ₹64,500 would invalidate the damaging outlook for MCX silver.
To summarise, treasured metals have breached the decrease finish of the prior buying and selling vary, suggesting short-term weak spot. There’s a case for a slide to the decrease goal zones talked about above.
(The author is a Chennai-based analyst / dealer. Views and opinion featured on this column are primarily based on the evaluation of short-term value motion in gold and silver futures at COMEX & Multi Commodity Trade of India. This isn’t meant to be buying and selling or funding recommendation)