Precious Metals continues to attract buyer on dips
Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Positive – – – Gold and Silver prices are
continuously getting support on uptrend line. Next resistance for gold is 55000
and for Silver 70000
Long-term View (3-4months) Positive – –Gold has made Inverse Head and Shoulder pattern on daily charts. Neckline resistance is $1820. If prices sustain above it, target would be $2020.
SPOT Prices
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
Important News and TriggersInternational News –– Bullion price is spiking, as the US Dollar plunges, following the sell-off in USD/JPY. The US Treasury yields jump over 3%, as the BoJ widened its YCC band to 0.50%.Silver – – – The supply of silver has been shrinking even more rapidly than gold on COMEX Warehouses. The drainage since the start of the year has been nothing short of spectacular. 48.5M ounces have left Registered since Jan 1. That represents more than 50% of the balance of 82M ounces last Dec 31. The silver Registered Ratio reached as low as 11.1% of total inventory on December 7th. This is the lowest the ratio has been since at least January 2000!
Economic data – Precious Metals price could gain traction given the market feedback to soft CPI figures. Ahead of the Christmas holiday, however, trading conditions could thin out and cause the reaction to remain short-lived. On the other hand, a stronger-than-forecast monthly Core PCE inflation should have the opposite effect and weigh on precious metal pack
