The weak spot in treasured metals witnessed in July spilled over to the month of August as effectively. After a restoration within the early a part of the month, treasured metals misplaced sheen within the latter half of August.
The rally within the US greenback and expectations of an aggressive rate of interest enhance by the US Federal Reserve affected sentiment in direction of treasured metals.
In consequence, Comex gold fell 3.1% in August to shut at $1,726.2 an oz.. Comex silver recorded a a lot steeper lower of 11.5% to settle at $17.88 an oz..
Within the home market, MCX gold futures fell 2.4% to ₹50,414 per 10 gm. MCX silver futures misplaced 10.6% to settle at ₹53,151 per kg.
Consistent with expectations, the Comex gold worth hit the goal of $1,825-1,835 talked about final month. After recording a excessive of $1,825 on August 10, the value turned weak within the latter half of August.
The short-term outlook for Comex gold stays weak and the value may drop to the $1,660-1,670 zone.
A break under the essential help stage of $1,645 might be a serious signal of weak spot and will push the value to additional lows. Under $1,645, Comex gold may slide to $1,600-1,610. The worth has to shut above $1,775 to invalidate the weak outlook.
Equally, Comex silver worth, too, staged a pointy restoration within the early a part of August however the restoration was not sturdy sufficient to push the value to the then talked about goal zone of $21.5-22.
Silver worth recorded a excessive of $20.87 on August 15 and turned weak thereafter. The short-term outlook is detrimental, and the value may slide to the following help at $16.5-16.60. A transfer previous $18.7 would invalidate the weak outlook.
Within the home market, MCX gold worth has been consolidating in a broad vary of ₹49,900 to ₹52,600 prior to now 4 months. The worth now’s close to the decrease finish of this vary. A break under ₹49,900 might be an indication of weak spot and will push the value decrease to ₹48,000-48,400. Solely a transfer above ₹51,750 would invalidate the detrimental outlook for MCX gold.
MCX silver, too, dominated weak final month and has been in a gradual downtrend for some time now.
The short-term outlook stays detrimental and a fall to ₹47,500-48,500 seems seemingly. Solely a detailed above ₹55,400 would invalidate the detrimental outlook for MCX Silver.
To summarize, the short-term outlook for treasured metals is detrimental. Until the value strikes above the degrees talked about above, count on the current weak spot to persist in treasured metals.
(The author is a Chennai-based analyst / dealer. This isn’t meant to be a buying and selling or funding recommendation)