After being range bound in the first half, precious metals recovered in the second half of June. Comex gold price surged to an eight-year high on June 30, on growing concerns relating to the impact of COVID-19 on the global economy.
Comex gold gained 2.8% to settle at $1,800.5 an ounce by end June. The price action was relatively muted with the white metal gaining 0.23% to settle at $18.5 an ounce.
In the domestic market, gold futures at MCX gained 3.5% in June to settle at ₹48,762 per 10 gm. MCX silver futures, however, closed 0.8% lower at ₹50,364 per kg in June.
Comex gold ruled firm and achieved the target of $1,775-$1,785 mentioned in the previous post. The breakout past the key resistance at $1,775-$1,785 is a sign of strength. The short-term outlook is positive and price is likely to head towards the next target of $1,835-$1,840. The uptrend would gather momentum on a close above $1,810. The positive outlook would be under threat if the price closes below the support level at $1,710.
Comex silver remained largely range bound in June. A breakout past the short-term resistance in the $18.9-$19.1 range is required to reinstate momentum to the uptrend. A breakout past $19.2 would not only lend such momentum but would also help the price reach the next target of $19.9-$20. The trend in Comex silver would turn negative below $17. A breakout above $19.2 or a fall below $17 would set the tone for the next big move.
MCX gold futures ruled firm in June and moved past the target zone of ₹49,100-₹49,800 mentioned last month. The short-term outlook remains positive and the price could head to the immediate target zone of ₹50,700-₹51,000.
A breakout past ₹49,000 would confirm the bullish view and strengthen the case for a move to the earlier-mentioned target. The short-term trend would turn weak if the price dips below ₹46,000 per 10 gm.
MCX silver remained largely range bound in June. That trend is likely to persist in the short term. A breakout past ₹47,100-₹51,700 is likely to trigger the next big move. A breakout above ₹52,000 would lend momentum to the upside and the price could then head to the next target of ₹54,500-₹55,000. A fall below ₹47,100 would have negative implications.
(The author is a Chennai-based analyst/trader. This is not meant to be trading or investment advice)