Precious Metals breathes on Easter after sharp runup last week
Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Positive – Gold is continuing its bullish run with next resistance 53000 while silver prices have also given an upside breakout from its descending triangle, next resistance at 69000.
Long-term View (3-4 months) – Positive – Any dips towards 50000 and 65000 should be used as buying opportunity for target of 55000 and 75000 for Gold and Silver respectively.
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
Important News and Triggers
International News – Precious Metals prices are taking a breath, after rising around 2.5% last week. People are interested in gold because they are worried about future purchasing power. The market is still considering whether the US Federal Reserve will be able to raise interest rates as much as seven times this year and whether or not inflation will materially weaken.
Economic Data – Elevation in policy rates by worldwide central banks raised hopes of mean reversion to neutral rates sooner rather than later. It is worth saying that the campaigning for higher interest rates will also be followed by the Fed in its May monetary policy, and in anticipation of that yields may remain underpinned while the gold prices will face headwinds
Domestic News – The Reserve Bank of India added 2.4t to their gold reserves in March, taking total gold reserves to 760.4t. Year-to-date, Indian official gold reserves have risen by over 6t.