Gold, Silver Bullions extend declines.
Gold, Silver Bullions extended losses on Wednesday and slipped to the weakest levels since December. MCX Gold June futures sharply fell on opening trade to Rs. 27,855 close to support of Rs. 27,800. Comex Gold June futures ended the day sharply lower, near the daily low and hit a fresh 10-month low of $1,526.7 an ounce close to support at $1518.40. MCX Silver July slipped to Rs. 51,201 around closing time. Comex Silver July Futures declined to $26.73 & close to a strong support at $26.65. The U.S. dollar index was higher and crude oil prices were lower. An important long-term technical damage for Gold prices & its continued Bull Run is on the verge of being inflicted.
Gold prices dipped yesterday to $1541.20 but have a breached the strong technical support of $1,540 only in Intraday Trade today & should ideally bounce up from dips below this level. Only a close below $1540 may send Gold sharply down to $1270 levels also.
Silver has a strong technical support in the $28 to $26.20 range on the downside. Any breach with a sustained momentum on closing basis below this range may signal a strong bearish trend for Silver & may decline further to $22.60.
“Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough,” according to minutes of the Federal Open Market Committee’s (FOMC) April 24-25 meeting released today in Washington. The minutes show Fed policy makers refining the conditions under which further monetary stimulus could be necessary. At the March meeting, a couple of FOMC members said additional action may be needed if the economy lost momentum or if inflation were too low. The Fed said at its meeting that the central bank would continue its swap of $400 billion of short-term debt with long- term debt to lengthen the average maturity of its holdings and help lower the interest rate on Treasuries, a move dubbed Operation Twist. The Fed is scheduled to complete the program at the end of June.
follow us on
For More details on Trade & High Accuracy Trading Tips and ideas - Subscribe to our Trade Advisory Plans. : Moneyline
|more from market insights >>|