Indian Gold December futures trade flat on Wednesday following muted trend seen in the international spot prices on firm US Dollar and rise in treasury yields.

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The dollar held close to its 2021 highs, denting gold’s appeal for those holding other currencies, said a Reuters report. Spot gold fell to $1,755.05 per ounce.

 

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On the Multi-Commodity Exchange (MCX), December gold contracts were trading 0.22 percent lower at Rs 46,656 per 10 grams at 0930 hours. December silver futures were trading 0.39 percent lower at Rs 60,750 a kilogram.

Gold and silver showed some profit-taking on Tuesday amid record gains in the benchmark 10-year bond yields in the United States ahead of the non-farm payroll data.

Gold December futures contract settled at $1760.90 per troy ounce, and silver December futures contract were settled at $22.61 per troy ounce. Due to weakness in the rupee, both the precious metals were settled on a mixed note in the domestic markets.

Gold and silver modestly traded lower on Tuesday amid a rebound in the U.S. equity markets, strength in the dollar index, and gains in the U.S. 10-year bond yields, suggest experts.

“The dollar index trading near one-year high and bond yields also crossed 1.54% levels. However, rising energy prices raised concerns of higher global inflation and another Chinese property firm, Fantasia group holdings, missed a debt payment this week, supporting precious metal prices at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect the market remains volatile ahead of the U.S. non-farm employment reports, but lower levels of support are protected. Buy on dips strategy could work for both the precious metals,” he said.

At MCX, Gold has support at 46600-46380 and resistance at 46880-47050; Silver has support at 60600-60100 and resistance at 61400-61900 levels. “We suggest buying gold on dips around 46600 with a stop loss of 46380 for the target of 47000,” recommend Jain.

Technical Indicators:

Sandeep Matta, Founder TRADEIT Investment Advisor

The precious metal is trading under pressure and finding support around its key phycological level of $1750/oz.

Reduction in the bond purchase, a strong dollar, and higher yield continues to weigh on the gold prices; however, we anticipate the bullish trend in the counter to continue.

We advise long-term investors to initiate a delivery-based position at current levels and add more on dips. Gold on MCX is also operating in the small range under pressure. The outlook is positive and the market participants should look for buying opportunities at a lower level of the range.

Key level for GOLD Dec Contract – 46680

Buy Zone Above – 46700 for the target of 46880-47070

Sell Zone Below – 46650 for the target of 46485-46290

Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited

Traders are advised to create fresh long positions in Gold and Silver in small dips near given support, traders should focus on important technical levels given below for the day:

December Gold closing price 46757, Support 1 - 46450, Support 2 - 46300, Resistance 1 - 46850, Resistance 2 - 47125.

December Silver closing price 60986, Support 1 - 60600, Support 2 - 60000, Resistance 1 - 61330, Resistance 2 - 62000.

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