Sharekhan has come out with its report on precious metals. According to the research firm, the targets on the downside for gold will be USD 1,350 and USD 1,321/ounce. The metal has resistances at USD 1,500-1,521/ounce.
Gold was falling since the last few months but the angle of decline was not a sharp one. However, as the yellow metal broke the support zone consisting of multiple intermediate bottoms, it nearly had a vertical fall. It broke the medium-term falling channel. However, the bulls gathered some strength to support the precious metal as it reached the long-term rising trendline. Consequently, gold has done a descent bounce from there. It has reached the 20-daily moving average and is now poised for the next leg down. The previous support level of USD 1,525 will now act as a key resistance. The targets on the downside will be USD 1,350 and USD 1,321.Trend - Down
Trend Reversal - USD 1,525.0
Supports - USD 1,405/1,340
Resistances - USD 1,500/1,521
Target - USD 1,350/USD 1,321Silver: Standing on a cliff
Weekly close: USD 24.070For several weeks, silver was trading in a narrow range and had formed a bearish triangular pattern. Silver broke down from the bearish triangle and resumed with the overall downtrend. On the downside, the white metal cracked through multiple previous lows and reached the lower end of the medium-term falling channel. At that level, silver has formed a bearish flag pattern and is ready for the next round of selling. The medium-term equality target on the downside remains at USD 21.00, whereas the larger channel target is at USD 19.35. The reversal can be trailed to USD 26.00.Trend - Down
Trend Reversal - USD 26.00
Supports - USD 22.04/21.50
Resistances - USD 24.82/25.50
Target - USD 21/USD 19.35Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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