US non-farm payroll employment report which showed a fall in employment by further 240,000 in October boggled the market. However China’s promise of a 4 trillion yuan ($586 billion) stimulus plan to support growth has brought some cheer in the market. The fund which will be utilized by the end of 2010 will help metals and energies sector.
On Monday technically gold and silver are bullish while copper and crude oil are highly oversold. All metals and energies are expected to rise but it needs to be seen whether they can hold on to the gains said a report from Insignia consultants.
“Today the domestic market will remain volatile as two opposing factors are on work rupee is appreciating while dollar is falling,” Harish Galipelli of Karvy Comtarde said.
“Gold will have a higher opening, it will be around 11,600/10 grams, I suggest that traders buy on dips,” Galipelli added.
Giving a technical view, Chintan Karnani of Insignia Consultants said gold December contract on COMEX (New York Mercantile Exchange’s Commodity Exchange) needs to hold $719/ounce this week to target $780/ounce and $815/ounce. “On a consolidated fall below $719/ounce will result in $707/ounce and $685/ounce.”
“This week if silver is able to hold $9.80/ounce and $9.45/ounce then it will target $11.70/ounce and $12.20/ounce. Sellers will emerge only if silver falls below $9.80/ounce and $9.45/ounce for $9.00/ounce and $8.50/ounce.
