MCX Gold & Silver Weekly Outlook 21 May – 25 May 2012

MCX Gold Weekly Analysis

On a weekly basis, gold prices gained by almost 0.8 percent on the international markets and by 2.0 percent on the MCX. The yellow metal touched a high of $ 1597.40/oz and closed its trading session at $ 1591.80/oz last week.
The week has begun on a positive note, with reassurance from global policymakers over the status of Greece. Positive sentiments are expected to hit safe-haven demand, but since the yellow metal also performs as a risky asset, we expect it to trade on a positive note during the week, taking cues from positive sentiments in global markets.

Weekly Technical Levels for Gold
-Buy MCX Gold June between 28550-28600, SL-28200, Target -29200/29500.(CMP: 29,003)
-Spot Gold : Support 1570/1550 Resistance 1605/1620. (CMP: 1596.10)

MCX Silver Weekly Analysis

On weekly basis Spot silver declined by 0.7 percent and touched a low of $ 26.73/oz last week. On the MCX, Silver July contract traded higher by 0.8 percent due to a weaker Rupee and touched a high of Rs. 54,747/kg in the last week.

With sentiments expected to be positive on account of latest statements by G8 policymakers, we expect silver prices to trade higher during the week. But risk to the downside persist as any negative news over the European economic crisis could have a dampening effect on market sentiments.
Weekly Technical Levels for Silver
• MCX Silver :Support 53,200/52,000 Resistance 56,000/57,200. (CMP:54,387)
• Spot Silver : Support 27.90/27.30 Resistance 29.50/30.10 (CMP: 28.62)