The political crisis in Middle East, weak USD and global inflation worries lifted bullion prices in recent months. Gold prices are likely to be well supported on investment demand and safe haven demand as well. However, Gold prices are expected to witness some correction from present levels and could touch 1370-1350 USD in the near future.
Silver prices have risen by approximately 90% in the last eight months. While, Gold has risen by 20 percent during the same period of eight months. Silver has outperformed Gold from for the past few months and is likely to give better returns in the coming few months as compared to Gold.
Gold futures prices fell by more than one percent on COMEX yesterday. While, Silver prices also fell by approximately one percent yesterday. Gold may find supports at 1390, 1370 and 1355. While, resistance levels are seen at 1435 and 1465. If Gold prices are succeeded to stay above 1430, it could touch 1475-1490 levels within next few trading weeks. While, if Gold prices falls below 1390 and stays below the level, it is likely to touch 1360-1340 levels. Any selloff in Gold will be tentative and it may provide good opportunities for long term investors of Gold.
At MCX, India's largest commodity bourse, Gold April futures settled slightly down on Thursday at Rs. 20858 per ten grams against previous day’s close of 21152 down by 294 rupees.
MCX April Gold contract opened up this morning at rupees 20875 per ten grams, made an intraday low at 20857 and last traded at 20903 up by 45 rupees after made an intraday high of 20932.
Support for MCX Gold Apr contract is seen at 20600 and below it; prices can test 20300, while the resistance levels are 21100 and 21400 respectively. Short term range of MCX Gold future prices is 20000-21200.
