During the previous week in the COMEX market, base metals such as Aluminum, Zinc and Iron Ore witnessed low volatility, closing lower by more than 1%. Lead prices stayed unchanged for almost whole week, again closing almost at par. However, Silver continued to fall in the start of the week, but started its uptrend journey Thursday onwards. Whereas, Gold traded in the range of 1,853 to 1,856, ending the week unchanged.
During the week, Silver made a tragic comeback, gaining more than 8% after the prices rallied on Friday, as the traders piled into silver on short squeeze sparked by Reddit posters call. The entire market – from miners’ shares to exchange-traded funds and even the physical metal – has emerged as one of the latest targets of investors. Posts encouraged people to pile into IShares Silver Trust, the largest silver exchange-traded fund, and one described it as “THE BIGGEST SHORT SQUEEZE IN THE WORLD.”
Prices of gold inched higher a bit during the week after the Finance Minister Nirmala Sitharaman in Budget 2021 proposals said that the government will rationalize customs duty on gold and silver. Currently, gold attracts 12.5% import duty. The government announced cut in customs duty on gold and silver to 7.5% from 12.5%. Indian imports bulk of its gold and silver requirements.
The precious metals were also supported as the European equities witnessed a retreat as the region fight over COVID-19 vaccine supply, alongside increasing number of COVID-19 cases. However, the gains in the precious metals was capped after the release of better than expected economic data of UK, France, Germany and Spain.
For the current week, investors needs to keep a watch on economic data such as Eurozone’s Final Manufacturing PMI, UK’s Final Manufacturing PMI, US’ Final Manufacturing PMI, ISM Manufacturing PMI, on 1st February, US’, Eurozone’s and UK’s Final Services PMI, Eurozone’s PPI, US’ Crude Oil Inventories on 2nd February, UK’s Asset Purchase Facility, BOE Monetary Policy Report, BOE Gov Bailey’s speech on 4th February and US’s unemployment rate on 5th February.
In the current week, we expect gold in COMEX market to be in the range of $1,799 to $1,908, while silver is expected to be in the range of $24.5 to $31.5. Whereas, as per our prediction for bullion market traders, gold futures will trade in the range of 47,007 to 51,714.
#beelinebroking #commodity #trading #investing #daytrader #gold #silver #metals #investment #finance #success #money #commoditytrading #NavGujaratSamay #NGS
Disclaimer: http://bit.ly/2uLiAVH