Gold clings to gains near $1860 on dollar weakness

Gold and Silver – Kya Lagta Hai

Short-term View (up to 1 week) –PositiveGold is trading in a channel with lower highs and lower lows. Next target level it could touch is 52000. While Silver has retraced almost 23.6% from its lows, next level to watch for is 50% retracement 63700.

Long-term View (3-4months) -Positive – Any dips towards 50000 and 60000should be used as buying opportunities for the target of 55000 and 70000 for Gold and Silver respectively

SPOT Gold Daily Price Chart

SPOT Silver Daily Price Chart

Important News and Triggers
  • International News –Financial markets were in risk-off mode on Tuesday as lingering growth and inflation concerns came back under the spotlight.Gold prices continue its recovery as Dollar Indexsurrenders the almost 3% gains after hitting a 19-year high of 105.00 on May 13 and now trading below 102
  • Demand and Supply – If we look at US CFTC data, speculators for gold futures raised short positions by more than 35 per cent from the lows in late March.
  • Economic Data–Despite lingering inflation, market participants doubt how tight the US Federal Reservemonetary policy could be. Speculative interest is now considering two potential 50 bps hikes and then a less aggressive stance.
  • Domestic News–Gold imports rose 33.3% in FY22 to 837 tonnes, or 12% more than the pre-pandemic annual average of FY16-20.

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