Gold up on Friday following the previous day's tumble, swept higher in an equities rally as EU leaders agreed to push for a deeper economic integration and as US consumer sentiment hit a six-month high.
The precious metal, however, notched its third weekly loss in the past four weeks, hurt by technical selling earlier this week as investors remained doubtful that the European Union would resolve the crippling debt crisis in the long term.
Bullion followed the S&P 500 higher after the EU secured an historic agreement to draft a new treaty to form a closer fiscal union in the euro zone, but Britain was left isolated as Europe's third-largest economy refused to join the other 26 countries.
Bullion posted a weekly decline of 2%. On Thursday, it tumbled after the European Central Bank dashed hopes of more-dramatic action to fight the euro zone debt crisis.
MCX Silver has given a breakout from the running triangle which is a bullish sign in the short term. The target on the upside comes to 59900 and the support exists at 56000. Hence, it’s a favorable risk-reward for the bulls. RSI (14 day) has given a buy signal.
Recommendation: Buy Silver at 57196 for a target of 59900 and a stop loss of 56000.
MCX Crude oil is trading in a range forming higher tops and higher bottoms, however, the range seems to be narrowing signaling that the trend is about to come soon. This range is expected to break on the lower side as the five wave rise from the recent bottom seems to be getting over. The resistance on the upside is at 5285 and the support is at 5135.
