- Shanghai shutdowns due to COVID lockdown are worsening supply shortages globally.
- Fed is suppose to Taper from 9$ Trillion to a normal level is going to be an Big challange
- By taking Money out of the system, liquidity will decrease & there could be a credit crunch just like 2008.
- That is the reason Fed is afraid of recession due to rate hike & pulling money out of economy.
- Effect: This will effect on a buy side in Gold for a long term Picture. But before that Gold may touch around 1820$ to 1835$ by weekend , which is a very good Buy point.
Technical View for the Day:
- Dollar Index is high 104.06 after 19 years - Its Negative for Gold
- Gold Open Interest 5,54,984 reduce by 18,789 lots which is quiet high it indicates GOLD will remain only Lower side for the day.
- Daily Chart - It has a resistance @ 51555 which indicates to move Gold down till 50550 again.
Conclusion: Gold remain on Sell side only for the day.
USDINR will remain weak & try to cross 78Rs which will maintain MCX Gold & Silver sustain their prices on upper side even though COMEX remain downside.
Range: 51550- 50550
Our Preference: Sell Gold 51550 for target 51000 & 50700 with SL 51650+
Alternative Scenario: Buy Gold 50700+ for target 51150 with SL only below 50600
51950 Last sell for the day
51550 Sell for the day
Range: 61914 - 63600
Our Preference: Buy Silver 61920+ for target 63500 with SL only below 61600
Alternative Scenario: Sell Silver Only below 61550 for target 60900 with SL 300 point
Silver has a crucial support @ 21.96$ = 61920 below the same Silver remain down for the sell.