Gold during the early morning session on Tuesday both gold and silver are losing some weight with the Comex prices for yellow metal standing near the $1315 an ounce mark
Gold went down today despite the decent drop in the US Dollar index which usually has a negative correlation with the precious metals space. Also continuing set of weak economic data from the US lead to support to the commodity in yesterday’s session and with a lot of important data due today evening we are expecting a similar trend particularly in evening session. The Intra-day trend looks a little bit murky as gold is not taking the weak cues out of the USDX currently. We feel the commodity is likely to trade in a ranged manner till the US hours though if the housing and building permits data disappoint heavily, we could see some support coming-in.
It should be also noted that the PPI number today and CPI number tomorrow along with the FED meeting minutes to be published late night today can drive high volatility in the commodity for a day or two. Overall outlook for today stays ranged.
Global Market Analysis: Asian equities are trading mixed tracking a similar closing in the US overnight. The economic data from the US and EU had been highly disappointing yesterday. In the currency space though, the USDX fell yesterday and currently trading below the 80 mark. The Euro and Pound though gained and currently hove near 1.3760 and 1.6680 levels respectively. On the economic data side, we have construction, housing and inflation related numbers from the EU and US session today. Especially the housing starts and building permits along with the PPI number from US would be critically watched. We feel the PPI could remain ranged though other data could see some drop as also been the case with other indicators lately.
Gold and Silver at Comex are trading down by 0.5% and 0.8% to $1317 and $21.75 per ounce mark. While we hold a bullish view for the week, we feel the modest weakness in the two is likely to continue in today’s session. We broadly have a ranged view in Intra-day session today
Silver Comex added weight with the Ratio between the Gold/Silver falling below the important support zone as also highlighted yesterday. However we would wait for a day or two for conformation and if it holds below the support; we could see very strong performance on silver over gold continuing. For the same though, base metals trend also needed to be watched closely. In Indian markets however traders note that similar performance is not getting replicated as locally, gold is getting support from the policy measures by the government. For the day, we have a ranged view in this commodity likewise the yellow metal.
Commodity Advisory Services Tips
SELL GOLD MCX APR NEAR 30100 SL 30145 TGT 30000.