BULLION OUTLOOK FOR 19-20 OCT 2016

GOLD  SELL ON RISE @ 30000 SL 30100 TGT 29900-29850.

SILVER  SELL ON RISE @ 42400 SL 42600 TGT 42200-42000.

Gold: Gold trading range for the day is 29609-29929. Gold prices ended higher as a pullback in the U.S. dollar from a seven-month peak boosted the appeal of the precious metal. Fed Vice Chair Stanley Fischer said the U.S. central bank is "very close" to its employment and inflation targets. Overall gold holdings in ETFs at 57.433 million ounces are up more than 2 percent since Sept. 15.  

Outlook: Dec. Gold prices have recovered from the lower end of its trading range. Prices should test its resistance areas between 29885—29950 from here on. A decisive breakout above 29950 levels will trigger a bounce towards 30040/30138 levels. Areas between 29550—29460 are the immediate support zones on dips.

	R2	R1	S1		S2	TREND
GOLD	30100	30000	29900		29800	SIDEWAYS

Silver:  Silver trading range for the day is 41782-42566. Silver gains as disappointing U.S. inflation data was seen as easing pressure on the Federal Reserve to tighten monetary policy, weighing on dollar. Boston Fed President Eric Rosengren said the current levels of jobs and inflation support the case for a rate increase soon. The U.S. Commerce Department said that consumer prices inched up 0.3% in September, matching expectations.

Outlook:  Sustenance above immediate resistance around 42400 levels will push silver prices higher towards 42579/42773 zones. A daily close above 42800 will see prices recover towards 43198/43550 levels. Until then rallies towards 42700 areas can be sold into by traders. Immediate support for the counter is seen around 41550 levels

	R2	R1	S1		S2	TREND
SILVER	42600	42300	42000		41800	SIDEWAYS