Precious Metals FUTURES Update

The liquidation in Asian stock markets has put some pressure on Gold and Silver markets over the past couple of sessions.

Especially the Indian markets have been under the gun, with the Nifty 50 stock index taking a hit. With Indian equity under pressure, this has also forced some liquidation in the Gold markets. So until we see a turn around there, we expect some pressure to be kept on Gold, by Asian sellers.

However, the current Silver situation appears more ominous, as we are trading very close to major support.

The previous two sessions do not provide any security for the bulls, as there has been little sign of any recovery in prices.

We favor selling into any rally on May Silver for an extension to the two last sessions downwards, targeting 13.750 in the near term. Reverse positions at 13.750 for a consolidation of the longer term trend.