Last week we witnessed a big rally in gold and silver prices on the back of a correction in the dollar index. MCX Gold prices increased by 2.84% and closed at 52311 levels and in the international market it increased by 5.41% and closed at $1771 levels. MCX Silver prices increased sharply by 1.79% and closed at 61619 levels and in the international market it increased by 4.07% and closed at $21.69 levels. On the other side, the dollar index corrected by 3.95% and closed at 106.41 levels which is 12 week’s low levels. It corrected against the euro, yen, pound, and Canadian dollar.
We have also witnessed the crash in crypto which worked as a supportive factor for bullions as a safe haven asset. Last week bitcoin corrected by 24.13% and closed at $16050 levels which is the lowest level since nov 2020.
Gold is also taking cues from the US inflation registered its slowest annual reading in nine months, heightening speculation that the federal reserve will back off from the aggressive rate hikes.
For next week we are expecting that gold and silver may trade positive and may test the highest levels. Technically the trend of gold and silver are positive followed by trend line break out coupled with substantial volumes in the counters. Gold has a support at 51800 ($1740) & 51500 ($1720) levels, resistance at 52700 ($1790) & then 53000 ($1820) levels. Gold traders can buy gold with the stop loss of 51500 levels for the target of 53000 levels.
Silver has a support at 59000 levels ($20.50) & resistance at 63000 ($22.20) and then 64000 ($23) levels. Traders can buy silver on dips with the stop loss of 59000 for the target of 63000 and then 64000 levels.
Last week Brent oil closed on a flat note at $95.82 levels. Hope of easing some restrictions from China for covid will raise economic activity and demand in the world’s top crude importer. We are expecting that Brent crude oil prices may trade between $90 to $98 levels. Any positive decision on covid zero policy from china will provide support to the brent crude oil prices