Gold & Silver Update : Week Ending 17 May 20

Bullion counter may continue its upside momentum as risk has enhanced courtesy sentiment which has weakened by rising U.S.-China tensions over the coronavirus coupled with a string of weak economic data, including surging unemployment in the United States heightened fears over a coronavirus-induced global downturn.

The outbreak has infected more than 3.71 million people globally, battered global growth and prompted investors to seek safe havens such as gold.

Meanwhile on investors' radar are developments surrounding U.S.-China trade as President Donald Trump's administration is weighing punitive actions against Beijing over its early handling of the outbreak.

Gold can move towards 46800 while taking support near 45500 while silver may move higher towards 44500 while taking support near 42000.

India's gold imports plunged 99.9% year-on-year in April to their lowest in nearly three decades as air travel was banned and jewelry shops were closed amid a nationwide lockdown to curb the spread of coronavirus. Big central banks are buying from an expanding menu of government bonds, corporate debt and consumer loans to help businesses and households through the pandemic.

Australia's Perth Mint stated that its gold sales shot up in April to their the highest level in at least eight years as concerns of a shortage prompted investors to stock up to seek cover from the economic blow from the coronavirus.

Trump stated that he would be able to report in about a week or two whether China is fulfilling its obligations under a Phase 1 trade deal, even as his the administration is weighing actions against Beijing over its handling of the virus.

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