The short-term outlook for precious metals is positive in the short-term. The medium-term outlook remains weak and the downtrend is likely to continue once the expected near-term rise is complete
The short-term outlook for precious metals is positive in the short-term. The medium-term outlook remains weak and the downtrend is likely to continue once the expected near-term rise is complete
Precious metals remained weak in October, ending lower for the seventh straight month. Sentiment was weighed down by a stronger dollar and higher US bond yields.
Comex Gold closed 1.9% lower to end October at $1,640.7. However, Comex silver closed almost unchanged at $19.12.
On the domestic market, MCX Gold closed marginally higher at £50,322 per 10g while MCX Silver was up 1.4% at 57,678kg.
As expected for the last month, Comex Gold rose and hit the upper end of the target range of $1,695-$1,715. After hitting a high of $1,738.7, Comex Gold turned lower to close on a weak note. towards the end of October.
The near-term outlook for Comex Gold is positive and the price could surge into the $1,725-$1,730 range. A move above $1,688 would strengthen the case for a rise to the target zone. A close below $1,620 would push gold prices lower and invalidate the positive short-term outlook.
In the domestic market, MCX-Gold also hit the target of ₹51,500-52,000. In the short term, the price of MCX gold is likely to rally higher into the ₹52,200-53,000 target zone. A move above £51,300 would confirm this upside outlook, while a drop below £49,800 would invalidate it.
In summary, the short-term outlook for precious metals is positive in the near-term. The medium-term outlook remains weak and the downtrend is likely to continue once the expected near-term rise is complete.
(The author is a Chennai-based analyst/trader. This is not intended as trading or investment advice.)
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