Gold Silver Market Report 12 June 2017

Fundamentals and News^*

Gold prices reversed its one week down-trend

Gold prices reversed its one week down-trend following sharp investment offtake and increase in buying interest from stockists and jewellery buyers, hurt by a sluggish overseas trend here at the bullion market.

Traders said besides a weak trend overseas, the yellow metal staged a strong comeback during the weeks trade.

Elsewhere, silver also rebounded sharply to close above the significant Rs 40,000 mark due, to heavy speculative buying coupled with higher industrial demand.

In worldwide trade, Gold prices fell to notch a third-straight decline and their first weekly drop in more than a month, despite a market fraught with the type of political drama that would ordinarily have offered a boost to precious metals.

The precious metal fell for a third day, meanwhile, after British elections failed to deliver a clear majority for Prime Minister Theresa May, knocking the pound sharply lower and helping lift the dollar index to its highest since late May.

The yellow metal saw a weekly decline of 0.7 per cent, which was the first such loss in five weeks, while the white-metal fell by 1.7 per cent.

Gold prices fell Friday to notch a third-straight decline and their first weekly drop in more than a month, despite a market fraught with the type of political drama that would ordinarily have offered a boost to precious metals.

August gold GCQ7, -0.84% lost $8.10, or 0.6%, to settle at $1,271.40 an ounce—logging the longest skid since the three-session period ended May 5. The metal saw a weekly decline of 0.7%, which was the first such loss in five weeks, according to FactSet data.

Friday’s moves in metals come after the U.K. parliamentary elections late Thursday delivered a stunning result: a hung parliament, in which neither the Conservative nor Labour Party holds a parliamentary majority. Now, U.K. Prime Minister Theresa May will attempt to form a minority government, where her Conservative Party would need to rally outside support in each parliamentary vote.
(*source Bloomberg)
 

Data – Forthcoming Release

Technical Outlook and Commentary: Gold

Gold for Spot delivery was closed at $1266.76 an ounce; with loss of $11.25 or -0.89 percent at 1.00 a.m. Dubai time closing, from its previous close of $1278.01

Spot Gold technically seems having resistance levels at 1287.9 and 1295.3 respectively, while the supports are seen at $1263.9 and 1256.5 respectively.

Technical Outlook and Commentary: Silver

Silver for Spot delivery was closed at $17.20 with loss of $0.23 or -1.34 percent at 1.00 a.m. Dubai time closing, from its previous close of $17.43

The Fibonacci levels on chart are showing resistance at $17.59 and $17.73 while the supports are seen at $17.16 and $ 17.02 respectively.

 

Resistance and Support Levels

Indications only, open & closing prices are bids; data source: Bloomberg; important disclaimer below; Times as per Dubai

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