bullion intraday

Gold fell in New York by the most in almost two weeks as the dollar strengthened against the euro, reducing the appeal of the precious metal as an alternative investment. Silver also fell

Spot gold tumbled through $900 a troy ounce, which sparked a wave of technical selling Monday that carried the metal down to $876/oz and its falls, which were attributed to large liquidations by CTA accounts in commodities, in particular gold. This liquidation is perhaps related to quarter-end pressures in order to raise cash for client redemption payments.


Gold tends to move in the opposite direction to the dollar as it seen as an alternative investment to the U.S. currency and a hedge against rising inflation. Oil prices have also eased as the dollar has firmed, reducing gold's role as a hedge against rising fuel costs.


The U.S dollar is gaining against the euro as it is still unclear if the Feds will hike or steady rates and on speculation that consumer confidence released today will show a drop, consequently that will negatively affect consumer's confidence. Therefore, at the moment, as the green currency remains weak, investors are still guided straight to the shiny metal.


Australian gold production has fallen by a greater-than-expected 7 percent in the last year its world's third-largest producer of gold behind China and South Africa. Its output is estimated at 231 tones in the year to June 30, against 249 tones the year before.


Platinum assets in Zuercher Kantonal bank's exchange-traded fund climbed 18 percent to a record last week. The 62,353.15 ounces in the ZKB Platinum ETF as of June 20 exceeded the record 54,498.72 ounces of Dec. 29, according to figures e-mailed today from Zurich-based ZKB. Platinum has trailed the company's silver, gold and palladium funds that climbed to all-time highs last month. The platinum assets were up 18 percent from 52,762.58 ounces a week earlier.

U.S.Economy:

The Chicago Federal Reserve's index of national activity improved from -1.23 to -.96 in May, still a sign of contraction. 63 of the 85 indicators used were said to have recorded negative changes.

The Federal Reserve meets today and Wednesday and is expected to keep the federal funds rate unchanged at 2.0%. Traders will be watching for Wednesday afternoon's statement for any clues to future direction.

Currencies update:

The IFO Institute's index of business confidence in Germany fell from 103.5 to 101.3 in June, weaker than expected.

European data yesterday showed that the economic slowdown is accelerating just as the European Central Bank is planning to raise interest rates, leading some traders to bet the ECB will be forced to hold rates steady, pushing the euro lower.


MCX Gold June - Technical Outlook:


The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.

Technicals are neutral to bearish signaling sideways to lower prices in the near term. Initial support for the market is around 12189 levels. if broken can see further fall to 12098 and 11978 If market holds above 12386 further rally can be seen towards 12457 and 12594

Recommendations–MCX Gold Aug: Sell at 12372 Target 12310 and 12230 Stoploss at 12415

MCX Silver July - Technical Outlook:

The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.

Technicals are neutral to bearish signalling sideways to lower prices in the near term. Initial support for the market is around 23515 levels. if broken can see further fall to 23831 and 23600 If market holds above 23898 further rally can be seen towards 24002 and 24190

Recommendations-MCX Silver July: sell at 23965 Target 23820 and 23700 stoploss at 24130

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