Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Oversold – As Gold and Silver have retraced, prices are oversold, we could see bottom fishing supporting prices ahead this week. Long-term View (3-4months) – Positive – Any dips towards 50000-51000 and 64000-65000 should be used as buying opportunity for target of 55000 and 75000 for Gold and Silver respectively respectively
Important News and Triggers
- International News – – Silver has slumped towards $23.50 this Monday amid a broader sell-off in risk assets and commodities and as USD strengthens.
- Demand & Supply – Global Gold ETF demand is very strong adding 12 tonnes last week with current holdings of 3329 tonnes now.
- Economic Data – Traders cited risk aversion relating to the increased risk of lockdowns in China with a Covid-19 outbreak now reported in Beijing, continued pessimism about the prospects for a peace deal in the Russo-Ukraine war and, perhaps most importantly, recent hawkish chatter from central bank policymakers.
- Domestic News–
Retail demand remained sluggish during March as buyers postponed purchases in anticipation of a correction in the gold price.