Silver Tips

Silver cracked heavily in the latter half of the week mirroring the weakness in Gold. Silver too eventually ended with a loss of over 3 per cent.

Silver had managed to sustain above the Rs 63,200-support level mentioned last week in the initial part of the week. However, once that was taken off there was no stopping the white metal as it eventually tumbled to the lower end of the target of Rs 61,000-odd level also mentioned last week.

The daily charts indicate that the white metal may get considerable support around Rs 60,800-odd levels - which is the 50-day moving average for the December contract. The corresponding key level for the March futures should be around Rs 62,650.

Break of Rs 62,650 can further weaken the white metal for downside target of sub-Rs 60,000-odd levels.

As per the weekly Fibonacci charts, Silver MCX March futures may face resistance around Rs 64,550-64,925-65,300, while seek support around Rs 62,150-61,780-61,400.

The corresponding key support and resistance level for Silver Micro February futures are as follows. Support at Rs 62,180-61,800-61,440, while resistance around Rs 64,570-64,940-65,315.

Silver Tips

Gold continues to edge higher on the daily charts as technical factors continue to support the up move. The near term support for Gold has now moved up to around Rs 31,700-odd levels.

Most of the momentum oscillators continue to remain in buy mode for Gold. Hence, any dip should be looked as a buying opportunity, with a stop at Rs 31,680.

The weekly charts, indicate an upside target of Rs 32,500 for the Gold.

For today, the Gold MCX December futures may face resistance around Rs 31,865-31,880-31,900. On the downside, Gold MCX may seek support around Rs 31,760-31,745-31,730.

The corresponding key levels for Gold Mini December futures are as follows - support at Rs 31,770-31,755-31,740, while face resistance around Rs 31,875-31,890-31,910.

MCX Silver Tips

Silver Holds more Promise on Chinese Buying:

A Chinese survey of purchasing managers pointed to a modest recovery in October. Refined Copper imports increased by 17% for the month and 7% year-on-year as a combination of improved sentiment and a pickup in financing activity drove increased buying. There was a shocking increase in refined Zinc imports, to the highest level seen since May 2009 at 73,000 tons. Silver demand in China, the world’s second-largest user, may jump as much as 10% next year to a record as investors look to preserve wealth & consumption may climb to as much as 7,700 metric tons. About 33% of the country’s demand comes from jewelry and coins, with the rest from industrial use in photography, solar and electrical appliances. A recovery in the solar industry may add to Silver Demand. The government is targeting 21 Giga-watts of solar-power installations by 2015 after installing 2.6 Giga-watts in 2011, according to Bloomberg New Energy Finance. Chinese investors are buying more silver as the second- largest economy slowed for a seventh quarter. Chinese investors want hard assets such as silver, especially when it’s cheaper than gold and requires less funding. Many producers and investors have hoarded the precious metal in the form of ingots or un-wrought Silver. Silver rose 53% in the Federal Reserve’s first round of quantitative easing, or QE, from December 2008 through March 2010, twice as much as gold, and 24% during the second phase ending in June 2011, three times as much.

Gold Silver News

Gold traded close to the lowest level in more than a week. Comex Gold prices ended with moderate losses yesterday, on more profit taking and technical consolidation on the charts. A stronger US Dollar index has also lent selling pressure to Gold and Silver early this week. Gold and Silver yet are in Bullish zone with downsides seemingly limited amid prompt bottom fishing. Gold and Silver have been consolidating at lower levels since over a week now & seem poised to take on a new leap upwards. Gold Futures for December delivery on the Multi Commodity Exchange – MCX Gold was higher at 31,450 rupees per 10 grams, after hitting a high of 31,475 INR, a level last seen on October 1, helped by a weaker Indian Rupee. The Indian festival and wedding season will start picking up in late October and peak next month during Diwali and Dhanteras, traditionally the occasions for buying & gifting Gold Bullion or Jewelry in India. Comex Gold yet has substantial support around $1747 & then further below at $1720. Upside target remains steady at $1855. Silver has been struggling to break above the resistance of $35.20 & once it closes above this, it enters a strongly bullish zone. Silver has substantial support around $33.