The Hindu Business Line : Silver may turn bearish

Pulls and counter-pulls and choppy market conditions restrain commodity fund managers from taking a view on precious metals, especially gold. The settings, however, are ideal for exploring jobbing opportunities.

While there is underlying expectation that gold would be range-bound and bearish in the near term, with the onset of the festive season, the festive buying may well be marred by a spike.

Silver, though on a comparatively stronger turf owing to strong support from copper, may witness bearish movement due to uncertainties in dollar, gold and crude movement, among other important factors.

"The market is at a standpoint from where it may move both ways in the near and medium term," feels Mr Anand Singhania of Prompt Commodities.

According to him, gold has a downside resistance at Rs 9,500 per 10 gm and silver at around Rs 18,200 per kg. On the upside, the barrier is Rs 9,700 for gold and Rs 19,500 for silver.

"Whichever barrier is broken first will determine the future trend," he pointed out. For investors, `stop-loss' is prescribed at Rs 9,540.

Gold for silver

Mr Vivek Bajaj of Mars Comtrade, while holding a similar view, advises selling gold for silver. His range for gold is Rs 9,200 and Rs 10,000, and Rs 18,275 and Rs 19,600 for silver.

"Copper is giving excellent support to silver at this juncture," Mr Bajaj feels. He sets the support price for copper at Rs 355, ranged up to Rs 383 in the immediate future. "Copper may even touch Rs 460 in the very long-term."

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