For the third month in succession, precious metals remained largely range bound in June. The lack of any meaningful triggers on the economic front played a key role in keeping the precious metals price in a tight range. While silver prices displayed some buoyancy in May, the white metal mimicked the trend in gold and remained range bound in June.

Comex gold closed marginally lower by 0.26% in June to settle at $2,339.6 an ounce. Comex silver posted a relatively deeper cut of 2.89% to end the month at $29.56 an ounce.

Mirroring the trend in the global markets, MCX gold closed 0.35% lower in June at ₹71,582 per 10-gram. MCX silver witnessed a slightly deeper cut of 4.23% to end the month at ₹89,540 per kilogram.

Similar to the price action witnessed in May, Comex gold remained range bound in June too. Expect the recent range bound and volatile price action to persist in the near term, as the price cools off from the overbought condition.

Strong uptrend

From a medium-term perspective, the Comex gold price is still in a strong uptrend and the price could head to the next major target of $2,500-$2,515. This view would be invalidated on a fall below $2,150.

After strong up move in May, Comex silver price was confined to a narrow range in June. As anticipated last month, the price cooled off a bit from the highs recorded in June, and also dropped to the target zone of $29.5-$30 mentioned last month.

The overall trend is still positive for silver and a move above $30.9 would signal the start of the next leg of the up move.

Mirroring the global trend, MCX gold too was stuck in a narrow range last month. As anticipated in the previous month, the price drifted lower to the then mentioned target of ₹70,500-₹71,000. The short-term outlook is positive and MCX gold price could head to the immediate target of ₹72,750-₹73,500. Only a move above ₹74,950 would open up significant upside potential. Until then expect modest upside and an overall sideways price action to continue.

As anticipated, the MCX silver cooled off in June and also dropped to the target zone of ₹89,500-₹90,500 mentioned last month. Expect the MCX silver to consolidate in a range of ₹87,700-₹95,000 in the short-term. Long term trend is positive and a move above ₹95,000 would indicate the resumption of long-term uptrend. The price could then head to ₹99,000-₹99,750.

Long-term outlook positive

To summarise, the long-term outlook for both gold and silver remains positive. The price could however continue to consolidate in a range in the near term.

(The author is a Chennai based analyst/trader. The views and opinion featured in this column is based on the analysis of short-term price movement in gold and silver futures at COMEX & Multi Commodity Exchange of India. This is not meant to be a trading or investment advice.)

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