Precious Metals finds cushion ahead of US CPI

Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Rebound –  Gold and Silver prices are gradually recovering from its lows. As expected, bottom fishing is supporting prices 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 – Having seen the US Federal Reserve raise rates by 50bps last week, attention now turns to next month’s expected 50bps rate rise, especially if US inflation shows little sign of slowing down when this week’s April numbers are released.
  • 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 – Expectations are for headline CPI to slip back to 8.1%, core prices to 6.1% and headline PPI to fall to 10.7%.
  • Domestic NewsThe physical gold market in India flipped to a premium this week as a price dip helped drive demand in the run up to the Akshaya Tritiya festival, while COVID-induced curbs muted activity in top consumer China 
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