A weakening euro and stronger dollar have weighed
on silver instead. Market participants noted that heavy losses in stocks and
other commodities markets accelerated gold’s sell-off, as traders
were forced to sell their gold holdings to raise cash to cover losses
elsewhere.
Now technically market is in oversold as RSI for
18days is currently indicating 19.94, where as 50DMA is at 57095 and silver is
trading below the same and getting support at 50801 and below could see a test
of 50042 level, And resistance is now likely to be seen at 52718, a move above
could see prices testing 53876.
Silver trading range for the day is 50042-53876.
Silver continued heading lower amid encouraging
dollar as support seen from ongoing concerns of eurozone.
India's
gold and silver imports fell sharply by 33 per cent in
April at $3.1 billion.
Greeks have reportedly yanked as much as EUR700
million from the nation’s banks since the outcome of the May 6 elections
Gold prices fell and
settled at 27962 as Greek talks to form a coalition broke down, setting the
stage for a new round of elections that could possibly
up the chances of Greece
being shown the way out of the eurozone.
Some support seen on domectic counter as rupee
slumped to a record low against the dollar testing
54.52 per dollar, pushes past last low in Dec as the global risk aversion added
pressure on a currency already under fire from the country's current account
and fiscal deficits. Greek political turmoil continued to hammer gold prices.
Talks among the country's political parties broke down in Athens earlier, and the country will likely
hand over power to an interim government and hold new elections in June.
The dollar has risen on fears Greece will ditch the single currency, which has
sent the euro and gold falling. Meanwhile in the US, data hit
the wire supporting the dollar as well. The data depicted a US economy moving along and in less
need of Federal Reserve intervention, which tends to weaken
the dollar in exchange for economic growth.
Now technically market is trading in the range as
RSI for 18days is currently indicating 31.44, where as 50DMA is at 28610.1 and
gold is trading below the same and getting support at 27814 and below could see
a test of 27665 level, And resistance is now likely to be seen at 28152, a move
above could see prices testing 28341.
Trading Ideas:
Gold trading range for the day is 27665-28341.
Gold prices updates fell as Greek talks to form a
coalition broke down, setting for a new round of elections.
Fears of a Greek exit sent investors favoring the
dollar, gold's traditional hedge.
Gold tumbled 18% as turmoil in financial
markets led to losses in equity and commodity markets.
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