Gold initially fell, after recent U.S. data pointed towards strengthening economic activity, which has weighed on gold’s safe-haven appeal.
The gold holdings of SPDR gold trust declined to 800.05 tons, while that of ishares Silver trust increased to 10,010.25, as on August 4.
Silver futures fell to a 6-week low, as the dollar’s advance reduced the appeal of commodities as alternative investments.
Gold futures traded steadily and in a range, with prices seen taking support on the upward sloping trend line as marked on the chart. Although prices breached the support line couple of times but failed to sustain and rebounded.
Gold now holds immediate support at 28000, below which it can test levels of 27850-27700, while upside resistance is seen at 28180 and next at 28300.
Silver futures have fallen sharply, after prices breached our given support of 44270 and 43700. We expect some bounce back in initial session today, but price are likely to see some resistance at 43750 and 44150, on the downside immediate support holds at 43270 and next at 42860.