Gold and Silver - Oct 18, 2021 - Outlook - Reliance Securities
2021-10-18 11:47:08 (Time Zone: IST)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices crashed on Friday. Domestic gold and silver prices also ended with solid losses on Friday.
Bullion Index ended in the red on Friday, tracking a weak close in domestic gold and silver futures.
Prices crashed on Friday as a rebound in U.S. bond yields and a surprise increase in September retail sales dented bullion's safe-haven appeal.
Retail sales rose 0.7% last month. Data for August was revised higher to show retail sales increasing 0.9% instead of 0.7%.
However, physical gold flipped back to premiums in India this week as key festivals ushered in jewellery buying and capped further downside.
Dealers charged premiums of up to $2 an ounce over official domestic prices versus last week's $2 discounts.
Data from U.S. CFTC showed that speculators on COMEX raised their net longs in gold and silver futures and options positions by 1,975 contracts to 69,817 and 341 contracts to 4,972 in the week ending October 12 respectively.
International gold prices have started flat to marginally stronger this Monday morning in Asian trade.
However, upside remained capped as the dollar and the 10-year benchmark remained were marginally strong this Monday morning in Asian trade.
Technically, LBMA Gold resistances are near $1790 and $1810. Supports are at $1760 and $1750.
Domestic gold prices could start flat to marginally weaker this Thursday morning, tracking a weak start in the overseas prices.
Technically, MCX Gold December resistances are 47550 and 47750. Supports are at 47000 and 46850.
International silver prices have started flat to marginally stronger this Monday morning in Asian trade.
Technically, LBMA Silver range for the day is $24.70-$22.45.
Domestic silver prices could start flat to marginally stronger this Monday morning, tracking overseas prices.
Technically, MCX Silver December range for the day is 61200-64300.
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