Precious metals remained lacklustre in May and closed on a weak word for the second month in succession. The strengthening of the U.S. greenback together with the rise in U.S. treasury yields dented sentiment round valuable metals.
As a consequence, Comex gold misplaced 3.3% in May to shut at $1,848.4 an oz.. Comex silver noticed a a lot deeper lower of 6.05% to settle at $21.69 an oz..
Mirroring the worldwide pattern, MCX gold futures fell 2.2% to shut at ₹50,847 per 10 gm. MCX silver futures dropped 5% to settle at ₹61,125 a kg, on the finish of May.
The Comex gold worth dropped under the decrease finish of the prior buying and selling vary of $1,880-$2,005. As anticipated, this breach triggered an additional slide, and the value examined the goal zone of $1,800-1,810 that was talked about final month.
Comex gold dropped to a low of $1,785 on May 16 and has since recovered during the last couple of weeks.
The short-term outlook stays weak and a drop under $1,825 will affirm the resumption of the latest downtrend. Unless the value strikes above $1,925, a slide to $1,770-1,780 could be the popular outlook.
The worth motion in Comex silver was in step with expectations. As noticed final month, the value dominated weak and fell to the goal vary of $20.40-20.50. After recording a low of $20.4 on May 13, the value managed to recuperate some floor up to now few weeks.
The short-term outlook for silver stays weak and the value is prone to slide to the subsequent goal of $20.2-20.4. This view could be invalidated if the silver worth closes above $23.5.
In sync with the worldwide pattern, MCX gold, too, dominated weak final month. The short-term outlook stays destructive and the MCX gold worth might drop to ₹48,500-49,000 per 10 gm. Only a transfer above ₹53,500 would invalidate the short-term destructive outlook.
As noticed final month, MCX silver remained weak and fell to the then talked about goal zone of ₹57,500-58,000. The short-term outlook stays weak and a fall to ₹57,000-57,500 seems probably. A fall under ₹60,500 would affirm the short-term destructive outlook. Only an in depth above ₹64,500 would invalidate the destructive outlook for MCX silver.
To summarise, valuable metals have breached the decrease finish of the prior buying and selling vary, suggesting short-term weak point. There is a case for a slide to the decrease goal zones talked about above.
(The author is a Chennai-based analyst / dealer. Views and opinion featured on this column are primarily based on the evaluation of short-term worth motion in gold and silver futures at COMEX & Multi Commodity Exchange of India. This isn’t meant to be buying and selling or funding recommendation)