Gold and Silver - July 14, 2021 - Reliance Securities
(Time Zone: UTC)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold and silver surged higher on Wednesday after U.S. Federal Reserve Chair Jerome Powell reassured investors that the central bank would continue its accommodative monetary policy despite a spike in inflation readings.
Domestic gold and silver prices also ended the session with solid gains on Wednesday, tracking overseas markets.
Powell, in prepared remarks before a congressional hearing, said the U.S. job market is still a ways off from the progress the Fed wants to see before reducing its support for the economy, while current high inflation will ease in the coming months.
The dollar turned lower on Wednesday after the statement and lent support.
Investors on Wednesday also cheered comments by European Central Bank (ECB) officials that the central bank would not tighten too early.
International spot gold and silver prices have started flat to marginally higher this Thursday morning in Asian trade supported by a dovish Fed.
Technically, LBMA Gold has given a sharp breakout where above $1825 level will continue its bullish momentum up to $1834-$1842 levels. Support is at $1820-$1813 levels.
LBMA Silver above $26.40 level will continue its Bullish momentum & further could see $26.65-$27.20 levels. Support is at $26.10-$25.70 levels.
Domestic gold and silver prices could start flat to marginally higher this Thursday morning, tracking overseas prices.
On the domestic front, MCX Gold August has crossed 48000 levels with increased in volume activity where if sustain above 48200 could see upside momentum up to 48370-48500 levels.
MCX Silver September above 69000 levels could see a Bullish momentum up to 69900-70900 levels. Support is at 68900-68000 levels.
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