Commodity market: all-round selling in metals, what should be the strategy in gold and silver

Today, gold and silver prices are getting stronger. The expectation of a relief package in the US is supporting prices. However, gold has remained in the recent realm, but the budget is coming next week, so what strategy should be adopted in gold and silver now.

Strength in gold

Gold price on MCX is around Rs 48,700. There is support from the hope of a relief package in the US. The edge is limited due to the strong dollar. Strong US data may put pressure on it.

Shine in silver

After tomorrow’s strong rally, again the increase is possible. The silver price on MCX is around Rs 68,500. Silver prices are seen at the upper level of 3 weeks. Expectation of relief package in US seems to be accelerating.

Statement of WORLD GOLD COUNCIL

Yesterday, WORLD GOLD COUNCIL issued a statement saying that gold demand in India has been the lowest in 26 years. Gold demand in India decreased by 35% in 2020. Corona crisis, demand has reduced due to lockdown. Gold consumption may increase this year as growth in the economy will increase demand for gold.

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Here, there is sluggish business in crude oil today. Iraq’s production cuts support prices, but slowing vaccine rollout pressures the upper levels. There is an all-round sell-off in metals, China has started reducing liquidity in the system, leading to price weakness.

Lethargy in crude

Brent prices are close to the $ 55 level. The vaccine rollout is slowly undergoing pressure. In many countries, there is a strong concern about corona. Crude support for Iraq’s production cuts may be supported. Crude is getting support in the US due to decreasing inventories. Explain that the inventory in the US has decreased by 9 million barrels.

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Shine of metals faded

Metals have weakened due to sluggish Chinese demand. At the same time, there is pressure on prices due to strong dollar. China has started reducing liquidity. In LME, copper, zinc inventories have increased while zinc inventories have reached an upper level of 3 and a half years.

Investment advice of SMC Comtrade by Vandana Bharti

Buy chana feb@4500, tgt 4560, sl 4470
Buy to feb @ 5590, tgt 5720, sl 5520

Investment advice by Sugandha Sachdeva of Religare Broking

Intraday Call: Buy MCX Silver Mar at 68000 T1 69500 Sl 67200

Intraday Call:  Buy Crude oil MCX Feb at 3790 T 3870 Sl 3745

Intraday Call: Buy Lead MCX Feb at 159.80 T 162 Sl 158.50