The price of gold edged up in Asia on Friday as a continuation of the ultra-loose monetary policy by the ECB (European Central Bank) during the night with the outbreak now on U.S. The data, which is expected to show a profit of 218,000 jobs. The European Central Bank cut its benchmark interest rate to a historical low of 0.15% Rate 0.25% since November of the same same day. We hope that the spot price of gold to trade on positive note by the European Central Bank cut its benchmark interest rate by 0.1 percent. In addition, weakness in DX and expectation of fall in U.S. data Non-Farm Employment Change can support the prices to trade positively.
However, the world market optimistic sentiments can lead to lower demand for safe haven and expectations in market players that the U.S. Fed may continue to reducing their stimulus package as fast may limit recent sharp rise in prices.
Above all else, the future is in MCX Gold August downtrend and moreover we saw a good selling pressures going last week. MCX GOLD August contract was trading down at Rs 25960. The GOLD rate touched an intraday high of Rs 25988 and an intraday low of Rs 25915. So far 1244 contracts have been traded.
So for the coming week, little bid for the lower levels are expected. For next week 25690/25250 will act as major support while 26340/26560 will act as a major resistance level in the MCX Gold August Contract. For the next week MCX Gold trader can use buy on lower level strategy if MCX Gold August futures contract holds above 26000 levels, then it could test the levels of 26200/26340.
Last week, MCX Silver July futures contract was trading at down Rs 40277. The SILVER rate touched an intraday high of Rs 40361 and an intraday low of Rs 40113. So far 1715 contracts have been traded.
Technically MCX Silver futures contract for July is the strengthening and maintenance around the lowest level. For next week 42800/44000 will perform as major resistance levels where as 39000/37500 will act as substantial support in MCX July silver futures. For the next week MCX Silver futures, traders can use buy on lower level strategy if MCX Silver July futures contact holding above 40500, then it could test the levels of 41500/42800.
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