Gold and Silver - July 5, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver prices continued to rebound for a 3rd consecutive day, on Friday tracking weakness of the dollar.

Domestic gold and silver rose on Friday, tracking overseas prices.

The U.S. 2-year yields tumbled on Friday in the wake of the payroll report, as wage gains remained steady.

Nonfarm payrolls increased 850,000 for the month, compared with expectations of 706,000. The May figure was revised to 583,000. The unemployment rate, rose to 5.9% against the 5.6% expectation.

The Commerce Department reported that factory orders surged 1.7% in May after declining 0.1% in April. Expectations had forecast factory orders rebounding 1.6%.

Meanwhile, prices also found some support on the back of growing concerns about the delta variant of COVID-19, which has been a constrain on the economic recovery in a number of countries.

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

However, COMEX is shut today for Independence Day Holiday.

The highlight this week will be on the Federal Reserve's policy committee minutes from its June meeting.

G20 finance ministers and central bank governors will convene in Venice starting Friday for a summit.

Meanwhile, the economic calendar is thin this week with only ISM Non-Manufacturing PMI for the month of June and jobless claims for week ending June 28 from the U.S. side of things.

Across the Atlantic, U.K June PMI and GDP data and Germany's ZEW Economic Sentiment for July could have a small impact on prices.

Technically, LBMA Gold above $1780 level will continue its bullish momentum up to $1797-$1808 levels. Support is at $1777-$1760 levels.

LBMA Silver has bounced back from 200-Daily Moving Average which is placed at $25.70 level above which will continue its Bullish momentum & further could see $26.55-$27.40 levels. Support is at $25.80-$24.60 levels.

Domestic gold and silver prices could start to marginally higher this Monday morning, tracking overseas prices.

On the domestic front, MCX Gold August holds a strong support near 47150-47000 levels. Resistance is at 47400-47700 levels.

MCX Silver September above 68700 levels will continue its Bullish momentum up to 70300-71400 levels. Support is at 68600-67300 levels.

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Source : Equity Bulls

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