By Mr. Prithviraj Kothari, MD, RSBL
The precious metals remain
upbeat with average gains of 0.4 percent with gold prices last at $1,275.10,
having set a fresh high at 1,282.90, the highest since February last year.
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| Gold Price rise |
The Yellow metal hit a
13-month high in the wake of the European Central Bank (ECB) decision to lower
deposit rates and sink another 80 billion euros per month into the economic
region. President Mario Draghi said the new efforts will run until March 2017,
but stated that he did not anticipate any further rate cuts.
In data, US weekly
unemployment claims between February 27 and March 5 came in at 259,000, under
the forecast of 272,000 and below the psychological 300,000 mark. This strong
US employment report had driven optimism that the US economy and also the world
economy may not be that weak as feared following which expectations on the
demand viewpoint have been adjusted aloft.
The focus now shifts to Tuesday’s
Federal Open Market Committee (FOMC) meeting 15- 16 March for fresh stance on the
interest rates in the US, which is world’s largest economy. The meeting will be followed by a summary of
economic projections from individual Fed members, as well as a press conference
by Chair Janet Yellen. The policy-board has faced severe instability, but
recent employment figures show the American economy is still recovering at a
healthy pace.
On the domestic front,
gold prices are expected to rise further followed by a weakening dollar. The
other precious metals also seem to be facing resistance at these levels,
although they also do seem to be attracting more investor interest now, which
suggests dips will be supported.
Key economic data watch
out for in the coming week:
·
Tuesday - Retail
sales, producer prices and the New York Fed Empire State manufacturing survey
·
Wednesday - consumer
price index, housing starts and industrial production
·
Thursday - Jobless
claims and the Philadelphia Fed manufacturing survey
There are several central banks
meeting this week i.e. Bank of Japan, Bank of England and Swiss National bank
whose rate related decisions could bring up some volatility in the markets.
Simultaneously, traders
will be keeping an eye on is the conclusion of National People’s Congress in
China and will be watching for any statements about fiscal stimulus or monetary
easing.
My Sentiment
for gold prices is positive and if it crosses $1280 an ounce then gold is expected
to reach the next
technical resistance levels of $1310 an ounce. As it failed to cross $1280 convincingly,
I do feel that there could be a short term pull back in prices but Gold’s price
of $1300 won’t be a surprise. Silver too has shown a good support around $15.50.
In rupee terms, I feel Gold prices would be in the range of INR 28,000 to INR
31,000 while Silver would be in the range of INR 36,000 to INR 41,500.
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| Silver Price rise |
Thank You!
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The primary purpose of this article by Mr. Prithviraj Kothari is to educate the masses of the current happenings in the Bullion world.
- Previous blog -
"Post-Budget 2016: Views of RSBL - Mr. Prithviraj Kothari"
http://riddisiddhibullionsltd.blogspot.in/2016/03/post-budget-2016-views-of-rsbl-mr.html
Facebook: https://www.facebook.com/prithviraj.kothari
Twitter: https://twitter.com/prithvirajrsbl
Website: http://www.rsbl.co.in/
YouTube: https://www.youtube.com/user/PrithvirajKothari
Google+ URL: http://www.google.com/+PrithvirajKothari
The primary purpose of this article by Mr. Prithviraj Kothari is to educate the masses of the current happenings in the Bullion world.
- Previous blog -
"Post-Budget 2016: Views of RSBL - Mr. Prithviraj Kothari"
http://riddisiddhibullionsltd.blogspot.in/2016/03/post-budget-2016-views-of-rsbl-mr.html
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