Gold - March 29, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International spot gold and silver tumbled on Monday as a firm dollar and rising U.S. Treasury yields dented the safe-haven metal's appeal.

Domestic gold and silver ended weaker on Monday, tracking weak overseas markets.

Prices were also under pressure amid bets for a swift economic recovery in the United States.

The rapid recovery of the U.S. economy, with vaccine numbers ramping up and U.S. President Joe Biden's announcement this week also weighed on prices.

Biden will release details on the infrastructure spending package that could be between $3 and $4 trillion this week.

Hedge funds and money managers raised their bullish positions in COMEX gold by 1,270 contracts to 56,010 and cut them in silver contracts by 3,017 contracts to 22,895 in the week to March 23, CFTC data showed.

SPDR Gold Trust ETF said its holdings rose 0.1% to 1,037.50 tonnes on Monday from 1,036.62 tonnes on Friday.

International spot gold and silver prices have started flat to marginally lower this Tuesday morning in Asian trade.

Technically, LBMA Gold Spot has given a breakdown of its consolidation phase where it has breached $1720 support levels indicating further downside fall up to $1700-$1689 levels. Resistance is at $1716-$1727 levels.

Technically, if LBMA Silver Spot trades below $24.50 we could a continuation of its Bearish momentum up to $24.22-$23.50 levels. Resistance is at $24.90-$25.40 levels.

Domestic gold and silver prices could start flat to marginally lower this Tuesday morning tracking overseas prices.

However, prices could remain range bound ahead of the long weekend.

Technically, MCX Gold June has given a breakdown below 45000 levels indicating a negative trend to continue up to 44500-44200 levels. Resistance is at 44850-45000 levels.

Technically, MCX Silver May is holding a support near 64000-63700 levels and resistance is at 64600-65300 levels it could trade within these ranges in coming session.

MCXBULLDEX April could trade within the range of 13800-14050 levels.

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Source : Equity Bulls

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