Gold and Silver: The day's inside trade advice
Gold trading range for the day is 29033-29155. Support is at 29071 and below could see a test of 29033 level, and resistance is now likely to be seen at 29132, a move above could see prices testing 29155, a report from Kedia Commodities indicates. Technically market is trading in the range as RSI for 18 days is currently indicating 65.41, where as 50DMA is at 28472.24 and Gold is trading above the same.
Some safe-haven demand also supported prices after a credit downgrade of Spain's sovereign debt by Standard & Poor's. Gold's four-day rise was underpinned by option-related buying and after Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank would not hesitate to launch another round of bond purchases to boost growth if necessary.
Gold rose as disappointing U.S. growth and European debt jitters boosted investment demand for the precious metal. Bullion buying accelerated after a report showed U.S. economic growth cooled in the first quarter as businesses cut back on investment.
A lessening of fears about the European debt crisis prompted some funds to increase their bullish bets on riskier assets such as equities and reduce positions on gold.
Silver trading range for the day is 55765-56003. Support is at 55818 and below could see a test of 55765 level, resistance is now likely to be seen at 55937, a move above could see prices testing 56003. Now technically market is trading in the range as RSI for 18 days is currently indicating 42.94, where as 50DMA is at 57063.84 and Silver is trading below the same and getting
Total silver supply fell to 1040.6 million ounces (Moz) in 2011. Within the total supply, mine production rose to 761.6 million ounces from 751.4 million ounces during 2010. Net producer hedging fell by over 82% to 10.7 Moz compared to 61.1Moz in 2010. Most of the hedging was concentrated in the first half of the year when silver prices surged near a record $50/oz.