Gold and Silver Outlook - Aug 23, 2021 - Reliance Securities

International gold was little changed on Friday, with gains curbed by a stronger dollar, while growing concerns over a global economic slowdown due to a spike in COVID-19 infections underpinned the safe-haven metal.

Silver on the other hand ended weaker on Friday.

Domestic gold and silver prices ended flat to weaker on Friday, tracking overseas prices.

Worries over a slowing economic recovery dented appetite for riskier assets and kept investors interested in gold, however possible tapering from the U.S. Federal Reserve has kept upside capped.

Reflecting investor sentiments, SPDR Gold Trust said its holdings fell 0.3% to 1,011.61 tonnes on Friday.

Meanwhile, data from U.S. CFTC showed gold speculators raised their net long in futures and options positions by 26,637 contracts to 77,649, while silver speculators cut their net long in futures and options positions by 2,147 contracts to 9,758 in the week to August 17.

International gold and silver prices were flat this Monday morning in Asian trade.

The dollar held near recent highs and could keep upside limited, although growing concerns over the economic fallout from the spread of the Delta coronavirus variant could losses in check.

Against the backdrop of recent tapering hints from the U.S. central bank, the spotlight shifts to the Fed's annual get-together this week in Jackson Hole, Wyoming, which could shed further light on monetary strategy and timeline.

Chair Jerome Powell will give a speech at the event on the economic outlook.

Technically, LBMA Gold is trading below 21-Daily Moving Average which is placed at $1785 levels below which could see downside momentum $1775-$1768 levels. Resistance is at $1787-$$1795 levels.

LBMA Silver above $23.00 level could see $24.10-$25.22 levels. Support is at $23.40-$22.65 levels.

Domestic gold and silver prices could start the Monday on a flat note this Monday morning, tracking overseas prices.

Technically, MCX Gold October could see sideways momentum where support is at 47200-47000 levels resistance is at 47350-47500 levels.

MCX Silver September above 61500 level could see 62400-62900 levels. Support is at 61000-60400 levels.

MCXBULLDEX May could trade on Bearish note within the range of 13975-14200 levels.

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Source : Equity Bulls

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