Posted By : Kishore B.S
Precious Metals Outlook:
Gold Technical Chart
Gold has been continuing to be range bound for the last 10 sessions moving in a very narrow range of 27700 to 28200 and thereby consolidating for the next move. Given the global scenario there has been equal number of positive and negative news emanating with recovery of US to deteriorating conditions in China. And since both have huge impact on the Global growth and recovery the wide impact has been on the Gold.
Technical charts have been indicating further consolidation for a few more sessions and then most likely a positive breakthrough since positive news is likely to push up consumption demand and negative news flow is likely to trigger investment in this safe haven.
The advise would be to buy on dips with stoploss of 27500 for the short term with likely targets of 29200-29800.
Silver being the most widely used commodity by the Chinese economy has been range bound with wide fluctuations of around Rs. 1000 over the last 10 days. The trend is likely to continue further and with strong support emerging at Rs. 56000 -56800 levels where fresh long positions can be initiated with likely consolidation and Upward targets of Around 59800-61000 levels soon.
(Contribution Mr. Hementh. V, TA Faculty, Stock Market Institute)