Daily Bullion report update on 7th April 2022

Latest Updates

FOMC Meeting minutes

Plans for Reducing the Size of the Balance Sheet
Participants
- generally agreed that monthly caps of about $60 billion for Treasury securities and about $35 billion for agency MBS would likely be appropriate
Fed has decided to reduce its Bond buy from $120 Billion to $95 Billion reduction by $25 billion.
Effect: Supply side will increase in stock market in compare to demand which will reduce cash flow in economy, this will impact negative on US Indicies & couple of stocks but positive for US Dollar as a currency, positive for T-Bond, simultaneously highly positive for Bullion.
Only negative point for Bullion is to increase an interest by 25 to 50 basis point but this decision will be taken in the month of May, so there is a high probability that Bullion may take upside in next 72 hours based on this.
EU & US are preparing for new sanctions on Russia
US& SPR (Strategic Petroleum Reserve) decided to release about 180million barrel in the market which cause negative for Crude but for short term only or technically to maximum till 94$ around then it will reverse to move upside again.

Gold

Range: 52100 - 51250

Our Preference: Buy Gold 51300+ for target 51900 & 52150 with SL only below 51180

Alternative Scenario: Sell Gold 52100 with SL 52250+ for target 51650

Trading Zone

51960 sell @ 1st stroke

51525 Buy @ 1st stroke

maintain SL of 75 point

Positional trader will remain in Buy side only with mention back up both in Gold & Silver

Silver

Range: 67510 - 65300

Our Preference: Buy Silver 65880+ for target 66900 with SL 65600

Alternative Scenario: Buy Silver 65200+ for target 67510+ with SL only below 64700

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