Gold Silver Bullion heading for the first weekly gain this month & a massive one at that. Gold posted its largest one-day gain, over 2% in more than three months in the previous session. Gold, Silver Bullions prices zoomed upside today as a recovery in the euro prompted fresh buying of the precious metal after prices slid to five-month lows earlier this week. Euro recovers from four-month low versus US Dollar to move into positive territory, taking some pressure off gold, though concerns over a Greek euro exit and instability in the Spanish banking system meant confidence was weak. Bullions demand rose on a renewed speculation that the Federal Reserve will announce additional stimulus to boost the U.S.economy, increasing demand for the precious metal as a safe haven.
Comex Gold June futures prices shot up today in Intraday Trade to $1597.5 on short covering from the lows of $1,526.7 seen on Wednesday & from a close of $1574.9 yesterday. Gold has bounced up as alerted repeatedly of the commodity having declined to over – sold conditions along with the Euro. Gold may now face resistance at $1605 & then at $1657 levels. A decline with a repeat close below $1540 may send Gold sharply down to $1270 levels also. MCX Gold June futures prices shot up yesterday in Intraday Trade to Rs. 28,598 from the lows of Rs. 27,855 seen on Wednesday. MCX Gold June futures prices further shot up today to Rs. 28,978 on the Euro’s rise against the US$. Gold may now face resistance at Rs. 28,990 & then at Rs. 29,368 levels till trades remain above Rs. 28,145. (As alerted today morning).
The US$ May futures shot up to 55.01 from the previous close of 54.6175 but closed down at 54.50 around end of session today. The INR can reach a new low of 56.35, as also indicated earlier on the break of the important 54.28 support level.
Silver, as repeatedly alerted, has a strong technical support at $26.20 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. Comex Silver July futures prices shot up today in Intraday Trade to $28.895 on short covering from the lows of $26.73 seen on Wednesday & from a close of $28.02 yesterday. Silver may now face resistance at $29.62 & then at $32 levels. MCX Silver July prices shot up in Intraday Trade to Rs. 53,608 from the lows of Rs. 51,201 seen on Wednesday. MCX Silver July futures prices further shot up today to Rs. 54,747. Silver may now face resistance at Rs. 54,595, 55630 & then at Rs. 58,240 levels till trades remain above Rs.52,150. (As alerted today morning).
Gold may rise for a couple of trading sessions & may again decline towards the month end as June Futures contracts come close to expiry. Silver may also see some downside movements then. But rises in both can be expected from June onward till trades keep above the crucial support levels as mentioned above.
Greece Update: Concern has grown that Greece may decide to leave or be forced out of the 17-country currency bloc after a rise in popular opposition to an EU-IMF program of fiscal austerity and structural reforms undermined attempts to form a government after May 6 elections. Greeks are scheduled to go the polls again on June 17. A victory by the far-left, anti-bailout coalition SYRIZA – which some opinion polls suggest is likely – would increase the possibility of the country leaving the euro. Earlier this week, the country’s president said Greeks had withdrawn up to 800 million euros ($1 billion) from banks as the political uncertainty deepened. In a further blow, the European Central Bank said it had halted liquidity operations with some Greek banks because their capital was too depleted.
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