Gold Outlook by Guest Vishal Vyas of SJR Commodities

WEEKLY OUTLOOK FOR GOLD& SILVER :( 11/06/07-15/06/07)

Recap:
Metals had bounced back trying to reverse the downside trend, but in preceding week the sentiments again went in favour of DOLLAR on Thursday when ECB kept interest rate hike on hold, consequently weakening all major currencies and metals against $. Bounce back was a just an illusion of option holders and rollover buying. Metals have resumed their bearish trend and on N.Y closing sessions the game was again under bear control.

Price Outlook/ Trade Recommendations:
Gold was unbeaten to penetrate and enter the safe zone of 681 levels were the bullish trend key lees, resuming the down trend and heading the market to the lower levels of 650. Bear having the control on the game, gold is forced to play in lower level range to 638-668 in following week. Weekly close below 657 levels has kept gold strongly in bearish tone, having major resistance at 657.30 and 667.70. On lower side 647.70 and 639.70 will try to support.

Silver had given good bounce back form strong support levels of 12.940. Overall bearish sentiments have affected silver to maintain its bull run. 12.98 and 12.66 will give strong support to silver while there are many resistances on upper side at 13.235-13.488 & 62 respectively. Silver will trade in longer range of 12.660-13.660.