Buying opportunity in Gold, Silver futures as price correct on intraday basis; analyst spells out trading strategy

Global inflationary pressure and spike in Covid 19 cases in many provinces in China weighed on the prices of bullion in the international markets. The near to immediate term outlook remains positive for the yellow metal, analyst Anuj Gupta said. Every correction is a buying opportunity, he said.

Gupta is Vice President (VP), Commodity and Currency Research at IIFL Securities.

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The MCX December Gold futures were cheaper by Rs 260 on Tuesday from the Monday closing price at around 6:20 pm. December Silver futures were trading down by Rs 586.

The Gold futures were trading at Rs 47,940 per 10 gram, down by 0.54 per cent. Buy Gold at Rs 48,000 with a stop loss of Rs Rs47,750 and price target of Rs 48,500.

Gupta also recommended a buy on Silver futures at Rs 65,800 with a stop loss at Rs 65,250 and target of Rs 67,000. They were trading at Rs 65,553 per kg, a discount of 0.9 per cent from the previous closing price.

Brokerage firm Motilal Oswal estimated Gold Futures to trade positively over the evening session. It places support between Rs 47,800 and Rs 47,500. The resistance is at Rs 48,300 and Rs 48,500. As for Silver futures, support is seen between Rs 65,500 and Rs 65,000 whereas resistance is seen between Rs 66,400 and Rs 66,800. It is expected to trade positively.

It also estimates resistance at USD 1810-1820 for international spot price of gold while putting support at USD 1790-1778. For Silver, support is seen at USD 24.18-24 and resistance is seen at USD 24.55- 24.70.

Triggers:

Intraday traders must watch out for US CB Consumer Confidence that will be released shortly. Also, watch out for September US home sales numbers that will also be released today.

Gupta’s advice to investors and traders is to follow global market cues, US Dollar movement and crude oil prices and inflation as near term triggers.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)