Gold and silver prices immediately dropped to their session lows and hit multi-month lows following the FOMC minutes release. The U.S. dollar index shot to its daily high on the news, which was also a bearish signal for precious metals traders.
Gold December contract on MCX inched 243 rupees up to settle at 30070. Today immediate support would be 29950 any failure below that would bring 29750-29500 and more down side. Any stability below 29500 may extend current down move towards 29300-28900 zones. Resistance is now seen near 30500 any sustained move above that level would bring 30800 and more upside.
Trading range for the day is expected among the key support at 29900 and resistance at 30500.
* Selling gold on jumps around 30200-30300 with stop loss above 30500 for targeting 29750-550 and more down side might be appropriate in short term.
* In alternative scenario selling gold below 29950 with stop loss above 30100 for targeting 29850-29750 and more down side.
Silver December contract inched 441 rupees lower to settle at 44999. Commodity closed below key support of 45800 for 3rd consecutive day. Today support would be 44900 below that it will try heading towards 44300-43400 and more down side. Resistance is now seen near 45900 and then 46600 any sustained move above 46600 would help this commodity to reverse trend overs short term picture.
Trading range for the day is expected among the key support at 44000 and resistance at 45800.
* Today selling can be taken below 45000 with stop loss above 45500 for targeting 44700-44400 and more down side.
* In alternative scenario above 46600 with stop loss below 46200 for targeting 47000-47300 and more upside.
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