Gold, Silver trading strategy: Stop-loss Rs 45800, Target Rs 43800 - Technicals explained by CapitalVia Investment

CapitalVia Global Research highlights the Weekly Technical View on Individual Commodities like Gold and Silver. Detailed analysis will help traders and investors to understand the levels on both these commodities.

Gold trading strategy:

Gold is looking week below Rs 44600, however RSI is showing oversold region at 31.45 mark, any bounce near Rs 45400 is the shorting opportunity for the coming week, In this case Trader must follow the stop-loss of Rs 45800 for the Target of Rs 43800.

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Rationale:  

US Bond yield is increasing above 1.61% which putting tremendous pressure on all the asses class, Dollar index is cross the resistance of $91.50 ,which also putting pressure on the gold prices, However it is suggested that do not make aggressive short position near this levels as market is oversold.     

Silver trading strategy:

Silver failed to cross 50 days SMA at Rs 67870 and fall back near support levels, for coming week silver can sell near Rs 67200 – Rs 67300 regions with the stop loss of 67800 for the target of Rs 63500.  

Rationale:

Higher bond yield and higher dollar prices are putting pressure on the precious metal; Silver is near 50-day SMA and at this point market is probably going to consolidate in small range to make a bigger move. That is not a huge surprise, because we have so much noise in the 10-year note. It is advisable for Trader should follow stick stop loss in the silver.