During the last week, prices of base metals like zinc, lead, and copper rose as the bulls made a comeback. Whereas, the prices of gold and silver hit the bottom by dipping 2% and 2.3%. Gold slipped below $1,900 mark during the week to close at $1,891.3 and silver slipped below its $27 to close at $26.645. In the initial days of the week, both the metals were on a rising trend due to the political uncertainty in the US Senate. In addition, numbers of the US ADP Non-Farm Employment Change fell by 123,000 for the month of December 2020, which is much lower than the expectations of +60,000. That too helped in the uplift. However, as the US Political tensions subsided a bit after the Democrats won two seats in the Senate, the Gold prices made a sharp decline.
As per the media reports, Pfizer Inc. and BioNTech’s COVID-19 vaccine proved effective in the UK and South Africa against a key mutant of the new variant of corona virus, which is highly transmissible. This news also weighed on the gold and silver prices. Along with these factors, the US Treasury yields soared above 1% earlier in the week, which also had a negative impact on gold and silver prices. The US Dollar traded higher at 89.85 against the basket of six currencies.
During the current week, important economic data such as US’ 10-year bond auction on 12th January, Eurozone’s Industrial Production for the month of November 2020 and US’ 30-year old auction on 13th January, US’ unemployment claims on 14th January, UK’s GDP for the month of December 2020, UK’s industrial production and manufacturing production for the month of November 2020, and US’ industrial production for the month of December 2020 on 15th January, will be released. Investors need to keep an eye on these data for the week as they can have an effect on both, base metals commodities and bullion market commodities.
In the current week, we expect gold in COMEX market to be in the range of $1,922 to $1,769, while silver is expected to be in the range of $26.8 to $19.6. Whereas, as per our prediction for bullion market traders, in gold contract futures, we advise to enter at the price of 48,100 with a stop loss of 46,955 and a target of 51,300.
Page 8, Nav Gujarat Samay Newspaper, 05 Jan 2021 #beelinebroking #commodity #trading #investing #daytrader #gold #silver #metals #investment #finance #success #money #commoditytrading