Gold Silver Weekly Recommendation By Moneymaker

 The COMEX Gold futures edged up above $1360 per ounce in the middle of this month but flipped back as quick gains in US dollar hurt the sentiments for precious metals. Dollar edged up from its six week low of 1.1370 against the Euro after the Conference Board released a report showing that its index of leading US economic indicators rose for the second consecutive month in July. The Conference Board said its leading economic index climbed by 0.4% in July following a 0.3% increase in June. This pulled COMEX Gold down to almost $1340 per ounce mark. MCX Gold futures for October moved mostly in a sideways range, with highs above Rs 31500 per 10 gram levels constantly triggering selling pressure. The US Federal Reserve officials believed last month that near-term risks to the U.S. economy had subsided and that an interest rate increase could soon be warranted. But they did not indicate when they would likely raise rates. The minutes of their July 26-27 meeting showed that officials were encouraged by a rebound in job growth. They also took note of a stabilization of financial markets after a bout of turbulence triggered by Britain's June 23 vote to leave the European Union. The Fed officials believed those developments had lessened the risks for the economy in the short run. The minutes show that as a result, the officials thought a rate increase "was or would soon be warranted. But a key factor holding the Fed officials back was the stubbornly slow rate of inflation, which has been running below the central bank's 2% target for more than four years.

Indian Gold demand witnessed a lackluster performance over last few months. An extended strike by Jewelers and elevated price saw consumer demand for gold in India drop 18% year-on-year to 131 tons in the second quarter of calendar year 2016 (Q2CY16), according to the latest World Gold Council (WGC) report on gold demand trends for the second quarter of 2016. The five year average for local Gold demand is 219 tons. In dollar terms, the demand stood at $5304 Million, down 13% on year.