US Employment report to further set tone of precious metals market

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Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Rebound – As Gold and Silver have retraced, prices are oversold and consolidating at lows, and we could see bottom fishing supporting prices anytime now. Long-term View (3-4months) -Positive – Any dips towards 50000-51000 and 62000-63000 should be used as buying opportunities for the target of 55000 and 75000 for Gold and Silver respectively  
SPOT Prices
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
 
Important News and Triggers
  • International News – Given inflation remains rampant and the Fed aren’t as aggressive as some pre-emptive bulls had hoped, some will see gold as an inflation hedge once again. Todays focus is on US Nonfarm payroll data and unemployment rate, which is set tone for gold markets next week.
  • Demand & Supply – Large speculators had been trimming longs and increasing short exposure to gold futures these past weeks. And now is likely a time they’ll look to reverse those positions.
  • Economic Data – The Federal Reserve increased interest rates by 50-basis points as expected. The current level of Fed Funds rates is now 75-100 basis points. The Fed will begin to reduce its balance sheet on June 1. The rate move is the largest since 2000 and is in response to burgeoning inflation pressures.
  • Domestic News Akshaya Tritiya gold sales is estimated to be 30-40% higher than the last year in India
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