MCX Gold May Face Resistance At 29999 Levels

Gold trading range for the day is 29796-30070. Technically market is getting support at 29862 and below could see a test of 29796 level, And resistance is likely to be seen at 29999, a move above could see prices testing 30070.

Gold shipments from Hong Kong to mainland China, which is challenging India to become the world's biggest gold market, fell 10% in June from the previous month.

Spot Gold prices increased 0.4 percent due to weak upbeat global market sentiments after reports that German government would back ECB’s bond buying programme. Additionally, weakness in the DX also acted as a supportive factor for the Gold prices.

The yellow metal touched an intraday high of $1615oz and settled at $1,610.39/oz in yesterday’s session. In the domestic markets Gold prices gained 0.9 percent tracking firmness in the spot prices and closed at Rs.29,928/10gms after touching a high of Rs.30004/10 gms on Monday. However, appreciation in the Indian rupee capped sharp
gains in the domestic markets.

Gold traded in the tight range and settled at 29928, sentiment remain weak after comments by Mario Monti curbed risk appetite, lending support to the US dollar. In an interview with German magazine Der Spiegel, Monti said tensions within the euro zone" bear the traits of a psychological dissolution of Europe," and added that Europe "must work hard to contain it."

However, the US unemployment rate unexpectedly ticked up to 8.3%, from 8.2% in the preceding month, keeping alive speculation over the possibility of further monetary stimulus from the Fed. Gold and the dollar trade inversely, and talk the Fed is considering more easing can weaken the greenback and drive investors to buy the precious metal.

Silver prices may test 53607 levels on breaching 53019
Silver trading range for the day is 53019-53607. Technically market is getting support at 53182 and below could see a test of 53019 level, And resistance is likely to be seen at 53476, a move above could see prices testing 53607.

Spot Silver prices gained 0.3 percent taking cues from firmness in the gold prices along with strength in the base metals pack. Additionally weakness in the DX also provided support to the white metal prices. The white metal touched an intraday high of $28/oz and settled at $27.9/oz on Monday. In the domestic markets MCX Silver prices gained 0.9 percent after touching a high of Rs.53,445/kg and closed at Rs.53,344/kg in yesterday’s trade.

Silver closed flat at 53344 and pressure seen on higher side as ongoing sentiment that central banks around the world will likely stimulate their economies with monetary easing tools.