MUMBAI (Commoditiescontrol) - Gold spot international prices declined from last week low of $1439 per oz, which should be considered as a profit booking for the recent sharp up move.
The economic data released during last week was mixed with US Chicogo PMI declined sharply, while UoM consumer index and personal income came in good. But the global as well as US economic slowdown is visible clearly, which may aid the overall up trend in gold prices going forward.
Chinese manufacturing as well as non-manufacturing almost unchanged in June at previous month levels. The much awaited US-China trade war talks back on track with both sides agreed to engage further and this was announced on the sidelines of G20 meeting between Mr Rump and Mr Xi on Saturday.
Trump on Saturday called the meeting in the Japanese city of Osaka "excellent" and said, "We are back on track." He confirmed that Washington had committed to not imposing any new tariffs on Beijing's exports.
We expect gold to retest $1400-1390-1380 region before it rebounds. Resistance is seen at $1440-1450 per oz.
The macro headwinds may continue to support buying in gold going forward, but in the near term prices may take a breather as the rally seen since the end of May was too far and too fast nad is overdone technically.
MCX Gold August-2019
Gold Aug after hitting the high of close to INR 34900 per 10 gm came under profit booking and reached the low 34150 on last Friday. We expect gold to retest INR 33700-33500 per 10 gm in the near term.
Two important things have to be observed during this week. One union budget--- any change in customs on gold, a long standing demand of the industry and secondly rupee in all probability may appreciate in the near term. If appreciate and settles well below 68.50 during next week closing basis, then gold prices may be in for a further drop. For the coming week 34500 may be capped on the higher side.
MCX Silver Sept-2019
MCX Silver also came under profit booking along with gold. Silver may retest close to 37700-37500-37300 levels before it bounce back.
In the international market $15.50 will continue to act as near term resistance, while we expect silver to retest 14.95-14.75 levels before it moves higher.
Silver should be considered as buy on dips (around 37300-37000) as the overall bullish trend is intact and to move higher once again in excess of INR 40000 by September.
(By Commoditiescontrol Bureau)
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