The Fed said yesterday that it would hold overnight rates in a range between zero to 0.25 percent, giving no hint of an imminent exit from its easing monetary policy.
Silver has outpaced gold this year, with an ounce of gold now buying about 66.53 ounces of silver, that’s down from a high of 84.4 on Oct. 10, which was the most since March 1995.
MARKET RECAP
Gold rose slightly during yesterday’s trading session after reports from China poured in wherein a researcher from China's ruling party called on the world's sixth biggest sovereign gold holder to buy more bullion to hedge against the U.S. dollar. At the same time, the upside in the bullion pack was limited as the US Dollar advanced after the Federal Reserve signalled yesterday that it would not change its policy steps to support the economy. Gold, which had been witnessing selling pressure and profit booking since failing to top $1,000 this month, is likely to trade within a narrow range unless Spot Gold trades above $942 mark. Globally, ETF & fabrication demand has slowed down over the past few weeks.
In the currency market, the Euro lost ground against the USD during yesterday's trading session, closing below its 10-Day EMA but above its 30-Day EMA. The Weekly MACD Histogram is in positive territory whereas the Daily MACD Histogram is in negative territory. The 14-Day RSI is at 53 levels. For the day, support is seen at 1.3800/1.3740 whereas resistance is seen at 1.3998/1.4094. The Rupee traded sideways against the USD during yesterday's trading session, closing above the 48.50 mark. Daily MACD Histogram is moving in positive territory whereas Weekly MACD Histogram is in negative territory, with the Rupee closing above its 10-Day as well as its 30-Day EMA. 14-Day RSI is near 57 levels. For the day, support is seen at 48.30/48.10 whereas resistance is seen at 48.75/48.95.
OUTLOOK
The bullion pack has been trading range-bound for the past few trading sessions with a negative bias from a short-term perspective. The short-term trend for both, gold & silver remain down as prices continue to close below its 10-Day EMA which is sloping downwards. Spot Gold has major support around the $910 - $912 zone. Currently the US Dollar holds the key for further price direction. Global inflationary concerns shall continue to benefit gold, a safe-haven & hedge against inflation. Silver too has been moving in tandem with gold prices, being supported by rising base metals prices on one hand and investment demand on the other.
On intraday basis, Spot Gold prices have immediate support at $924/$915 whereas resistance is seen at $938/$945. Spot Silver prices shall find support at $13.70/$13.50 whereas resistance is seen at $14.105/$14.25.
MCX August Gold has support at 14520/14410 whereas resistance is seen at 14720/14840. MCX July Silver shall find support at 22230/21960 whereas resistance is seen at 22585/22790 levels.
