Commodity market outlook - Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited
Gold retained sharp overnight gains to trade near a 16-week high on Friday and was poised to post its sixth weekly rise in a row, as troubles at a Portuguese bank hammered equities and stoked safe-haven demand for bullion. India surprised bullion markets by keeping the import duty on gold and silver unchanged at 10 percent in its fiscal budget, a move likely to limit overseas purchases by the second-biggest bullion consumer and further encourage smuggling. We expect Gold prices to remain higher for the week as uncertainty in Euro area and safe haven buying can push the prices higher.
Over all, MCX Gold August future is in consolidation and sustaining above the level of 28000.So for the coming week, we are expecting buying levels from the lower levels. For the coming week 28200/27900 will act as a major support whereas 29050/29400 will act as a major resistance level in MCX Gold August future. For the next week in MCX Gold, trader can use buy on lower level strategy, if MCX Gold August future sustains above the levels of 28600 then it could test the levels 28750/28950.
Technically, MCX Silver September futures is in consolidation and sustaining in range. For the coming week 49000/50500 will act as a major resistance levels where as 45000/42800 will act as major support in MCX Silver September futures. For the next week in MCX Silver futures, traders can use buy on lower level strategy, if MCX Silver September futures sustains above 46400 then it could test the levels of 47800/ 49000.