Gold Slumps Below Rs 27k Mark On Selling, Global Gloom
MCX Gold and Silver futures gained little as short covering witness in prices. Bullion complex may trade bearish for the day. Overall Bullion prices may witness selling pressure on every high levels in today's trading session.
MCX Gold August contract has important support at Rs 26800 and resistance at Rs 27300 for the day. MCX silver July contract has support at Rs 40500 and resistance at Rs 42000. Intra-day trader should use sell on rise strategy considering major resistance as stop loss.
MCX Silver July strategy: Sell around 41500 SL 42000 TGT 40700
Globally, the yellow metal crashed below the USD 1,300 an ounce mark on the back of panic liquidation from hedge funds and investors pressured by US central bank's decision to curtail its bullion-friendly bond buying programme earlier- than-expected.
Gold for August delivery tanked USD 87.80, or 6 per cent, to close at USD 1,286.20 an ounce on the Comex division of the NYMEX late yesterday. Silver July contract plummeted USD 1.80 to settle at USD 19.82 an ounce.MUMBAI: Gold suffered further setback and and plunged below Rs 27,000 per 10 gm mark at the local bullion market today on heavy speculative selling on the back of overnight global commodity meltdown.
Silver also dropped sharply due to frantic unwinding from stockists and traders.
Standard gold of 99.5 per cent purity shed Rs 265 to conclude at Rs 26,895 per 10 gm from Thursday's closing level of Rs 27,160.
Pure gold of 99.9 per cent purity also lost by a similar margin to close at Rs 27,030 per 10 gm from Rs 27,295 yesterday.
Silver ready (.999 fineness) plunged by Rs 765 to finish at Rs 42,350 per kg over its previous closing level of Rs 43,115.
We maintain our bearish view on gold and the selling to continue a little longer. In a healthy market, the sellers usually will face exhaustion and we felt that the gold market soon consolidate before any significant rebound. The new low is set at $ 1286 but we felt that the market could go lower from here. Some traders are covering their short from $ 1390 and $ 1387 and staying on the side line before entering the market again. Bearish sentiment continues to dominate and unless we see a flurry of physical demand (April 2013) then gold prices will remain under pressure.
Spot Gold fell below $1300 an ounce a three-year low on Friday and was in danger of recording its biggest weekly drop in 30 years after the U.S. Federal Reserve said it would wind down its bullion-friendly stimulus later this year.
Only a break above $ 1325 will give bulls some comfort but we see a potential low at $ 1250 for now. Otherwise, we felt that a major short covering could be on the cards if the price is right.
Resistance: $ 1325, $1366, $ 1423 Support: $ 1286, $ 1250, $ 1200
Traders Notes: Short gold as it breaks trend line at $ 1390 / $ 1395 with a target at $ 1361 / $ 1355- stop loss stands at $ 1403 / $ 1425
There is no escaping from the sellers as Silver traded lower due to mounting selling pressure. A weak start to the week as silver made lower high and lower low with most trading contain in the range of $ 21.00 to $ 22.50 area before the current selloff that take it back down to $ 19.77. There were no strong buyers and selling will continue to dominate the market. Investors favour lower silver prices and we may continue to see it weaken before any rebound rally.
CapitalBright Research Financial Services is a leading Stock Advisory Company ,having a strong hold in providing most authentic and accurate MCX Tips as well as Commodity Tips. For 2 days free trial call 8085-566-566
MCX Gold August contract has important support at Rs 26800 and resistance at Rs 27300 for the day. MCX silver July contract has support at Rs 40500 and resistance at Rs 42000. Intra-day trader should use sell on rise strategy considering major resistance as stop loss.
MCX Silver July strategy: Sell around 41500 SL 42000 TGT 40700
Globally, the yellow metal crashed below the USD 1,300 an ounce mark on the back of panic liquidation from hedge funds and investors pressured by US central bank's decision to curtail its bullion-friendly bond buying programme earlier- than-expected.
Gold for August delivery tanked USD 87.80, or 6 per cent, to close at USD 1,286.20 an ounce on the Comex division of the NYMEX late yesterday. Silver July contract plummeted USD 1.80 to settle at USD 19.82 an ounce.MUMBAI: Gold suffered further setback and and plunged below Rs 27,000 per 10 gm mark at the local bullion market today on heavy speculative selling on the back of overnight global commodity meltdown.
Silver also dropped sharply due to frantic unwinding from stockists and traders.
Standard gold of 99.5 per cent purity shed Rs 265 to conclude at Rs 26,895 per 10 gm from Thursday's closing level of Rs 27,160.
Pure gold of 99.9 per cent purity also lost by a similar margin to close at Rs 27,030 per 10 gm from Rs 27,295 yesterday.
Silver ready (.999 fineness) plunged by Rs 765 to finish at Rs 42,350 per kg over its previous closing level of Rs 43,115.
We maintain our bearish view on gold and the selling to continue a little longer. In a healthy market, the sellers usually will face exhaustion and we felt that the gold market soon consolidate before any significant rebound. The new low is set at $ 1286 but we felt that the market could go lower from here. Some traders are covering their short from $ 1390 and $ 1387 and staying on the side line before entering the market again. Bearish sentiment continues to dominate and unless we see a flurry of physical demand (April 2013) then gold prices will remain under pressure.
Spot Gold fell below $1300 an ounce a three-year low on Friday and was in danger of recording its biggest weekly drop in 30 years after the U.S. Federal Reserve said it would wind down its bullion-friendly stimulus later this year.
Only a break above $ 1325 will give bulls some comfort but we see a potential low at $ 1250 for now. Otherwise, we felt that a major short covering could be on the cards if the price is right.
Resistance: $ 1325, $1366, $ 1423 Support: $ 1286, $ 1250, $ 1200
Traders Notes: Short gold as it breaks trend line at $ 1390 / $ 1395 with a target at $ 1361 / $ 1355- stop loss stands at $ 1403 / $ 1425
There is no escaping from the sellers as Silver traded lower due to mounting selling pressure. A weak start to the week as silver made lower high and lower low with most trading contain in the range of $ 21.00 to $ 22.50 area before the current selloff that take it back down to $ 19.77. There were no strong buyers and selling will continue to dominate the market. Investors favour lower silver prices and we may continue to see it weaken before any rebound rally.
CapitalBright Research Financial Services is a leading Stock Advisory Company ,having a strong hold in providing most authentic and accurate MCX Tips as well as Commodity Tips. For 2 days free trial call 8085-566-566
