Gold rose above $1,600 for the first time in more than two weeks on Monday as a radical bailout package for Cyprus threatened to trigger fresh turmoil in the euro zone, driving investors to seek safety in gold. we are observing that prices have given a descending triangle breakout. RSI is in a buy mode and prices are trading above the short term averages. We recommend a buy around 29500 levels with a stop loss placed below 29250 levels for target of 30100 levels.
Silver retraced 61.8% of the previous fall and has fallen sharply from there. On the way down, it has broken the previous low of $29.23. The level is now acting as a strong resistance we are observing that prices are trading near the crucial support of 54000 levels. RSI is building strength and prices are trading close to the short term averages. We recommend a buy around 54100 levels with a stop loss placed below 53800 levels for target of 55500 levels.
Base metals off-late have seen heavy selling pertaining to policy and leadership transition in the top metal consumer China, a stronger dollar, high production, lofty warehouse stocks and weak global demand. Copper formed a large triangle where the last leg made a throw over of the pattern. Copper on the MCX futures has plummeted more than 5 percent so far this year following suit on the LME and Comex platforms where prices have slumped nearly 4 percent.
Live MCX Rates
GOLDM prices on MCX gained. At 15:54 hrs MCX GOLDM April contract was trading at Rs 29546 up Rs 169, or 0.58%. The GOLDM rate touched an intraday high of Rs 29638 and an intraday low of Rs 29390. So far 37579 contracts have been traded. GOLDM prices have moved down Rs 1954, or 6.20% in the April series so far.
