Fundamental & Technical Outlook for 2nd Week of May on Precious metal

Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited

Gold prices fell after U.S. employers boosted payrolls in April by the most in two years, cutting demand for the metal as a haven. A decline today would be the fifth straight loss, and the longest slump since April 1. The Federal Reserve reduced monthly asset buying to $45 billion on April 30 with the fourth straight $10 billion cut, and policy makers said further reductions in "measured steps" are likely. Gold prices are expected to move in a range to down for the week over poor physical demand internationally.

Over all, MCX Gold June future is in consolidation and sustaining around lower levels. For the coming week 27700/27000 will act as a major support whereas 28500/29100 will act as a major resistance level in MCX Gold June future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold June future sustains below the levels of 28282 then it could test the levels 28050/27800.

Technically, MCX Silver July futures is in consolidation and sustaining around lower levels. For the coming week 42800/44500 will act as major resistance levels where as 38900/36500 will act as major support in MCX Silver July futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver July futures sustains below 41500 then it could test the levels of 40200/ 38900.

Source : Equity Bulls

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