Trading strategies for Lead and Natural Gas by Tradebulls Securities

The rally for precious metals has cooled somewhat since minutes from the Federal Open Market Committee’s meeting in late July signaled that the policy-setting group was unwilling to use unconventional methods to keep benchmark interest rates lower, which was viewed as a short-term negative for gold. Gold and silver have slipped as we have seen marginal liquidation of speculative longs and easing of tension between the US and China. The 50-day EMA comes at $1,897 and any closing below that would certainly give bears an edge and we might see gold slipping till $1,860. In MCX, we might see gold slipping till Rs. 50,600-50,400. In medium-term, gold still looks positive because of the risks to the global economic outlook and election uncertainty. Any further dip below Rs 50,000 will be a good opportunity to accumulate gold.