Spot Gold Gained 2% Last Week, Weakened On Greek Poll Results

Gold witnessed uptrend last week on weakness in the Dollar Index and hit a high of $1633 before closing the last session at $1626/oz.

At MCX, August gold contract had hit a high of Rs 30,236/10 gm last week before closing at Rs 30,122 but gains in rupee capped further uptrend in gold prices.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased around 0.2 percent to 1,277.39 tonnes on 15th June 2012 from the previous level of 1,274.78 tonnes on 8th June 2012.

Gold fell for the first time in seven sessions on Monday as the risk of a Greek exit from the eurozone subsided after parties backing a bailout for the country won an election, denting the metal's safe-haven appeal. Despite the loss, gold is still up more than 3 percent so far in June, with investors likely to remain nervous on what awaits the eurozone after the Greek poll, given high borrowing costs in Spain and Italy and the continued threat of the region's debt crisis to the global economy.

Spot Gold support is seen at $1616/1611 an ounce while resistance is seen at $1628/1634. MCX Gold Aug support is seen at Rs 30050, 29950, resistance 30250, 30350.

Spot Silver Gains 0.8%, Uptrend Likely On Greek Poll Outcome
Spot silver gained 0.8% last week to $28.70 after hitting a high of $29.12 while in Indian markets prices rose 0.5% to Rs 54,582/kg on Friday.

Appreciation of rupee restricted further gains in silver prices while weakenss in the Dollar Index supports the white metal.

On a weekly basis, holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, increased around 0.3 percent to 9,696.23 tonnes on 15th June 2012 from the previous level of 9,669.08 tonnes on 8th June 2012. Silver can trade in range of 53800-55000 in near-term.

Silver prices can gain on Monday on the outcome of Greek elections as it also acts as an industrial commodity unlike gold. With Greek likely to stay in eurozone, commodities stand to gain in the near to medium-term.

Spot Silver has support at $28.40, 28.20, resistance at 28.70, 28.90, MCX Silver July has support at 54200, 53900, resistance at 54800, 55200.