7/14/2011 05:39:00 PM
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Gold Updates
Gold prices extended earlier gains to record highs for a second day on Thursday after hints of further policy easing from the Federal Reserve and a Moody's warning the United States may lose its top-notch credit rating hurt the dollar and sparked buying of safe-haven assets. Concerns over the scope of the euro zone debt crisis are also sparking fresh inflows into gold.
Precious Metals Complex surged yesterday with Gold making a record high when COMEX Aug futures touched $1,588.9 per troy ounce and COMEX Silver Sept futures making a monthly high of $38.4 per troy ounce. Number of factors had been supportive of safe haven demand which prompted investors to park funds in them. Dollar Index fell by 1.41 percent to 74.91 yesterday from 75.98 the prior day on comments from Federal Bank Chairman Bernanke which hinted additional stimulus measures might be used if economic conditions deteriorate further.
A weaker greenback supported the white metal Silver which pared its prior day losses and rose along with Gold yesterday. COMEX Silver Sept futures rose sharply by 7.06 percent to close at $38.151 per troy ounce from $35.634 per troy ounce the prior day.
Gold/Silver ratio edged lower due to more shine in silver and fell to 41.68 from 43.26 the prior day. Investment demand was also seen in Silver as holdings at iShares Silver trust increased by 133.38 tonnes yesterday pointing to stronger investment demand.
Copper Trend
COMEX Copper Sept futures surged up by 0.27 percent to close at $4.4035 per pound yesterday from $4.3915 per pound on 12th July, 2011 getting support from a weaker Dollar Index and possibility of more stimulus from the U.S. Federal Bank but a possible downgrade by Moody capped the gains.
MCX Silver Updates
MCX Silver has been trading within a broad range of Rs.49500-60000 for past three months. Price was resisting on a downward sloping trendline (R) and supporting at (S).Twice the price has rebound from the support line (S) creating a double bottom formation. A breakout can be seen at Rs.57000 level where the price has breached the short term resistance line (R). A sustainable close above Rs 57500 level could trigger a sharp rally breaching both the previous top of Rs 59030 and Rs 59976 and head towards our first target of Rs 61268 (T1). RSI is firm and holding above 50 mark which indicate further bullishness.
Suggestion - Go long targeting Rs 61268, with the stop loss closing below Rs 55000.
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