India Gold MCX December futures trade lower on Monday following muted trend seen in the international spot prices after weak US jobs growth numbers.

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Spot gold was flat at $1,757.71 per ounce. Prices hit a two-week high of $1,781.20 on Friday after the payrolls data but pared gains during the session, said a Reuters report.

On the Multi-Commodity Exchange (MCX), December gold contracts were trading 0.33 percent lower at Rs 46,880 per 10 grams at 0930 hours. December silver futures were trading 0.18 percent lower at Rs 61,692 a kilogram.

On Friday, gold and silver prices settled on a mixed note in the international markets. Gold December futures contract settled at $1,757.25 per troy ounce, and silver December futures contract settled at $22.68 per troy ounce. Due to weakness in the rupee, domestic markets were settled on a positive note.

Gold and silver give up early gains on Friday despite disappointing U.S. non-farm employment data. Lower than expected job growth could temper expectations of swift economic growth in the last quarter of 2021 in the United States.

“After disappointing U.S. jobs data, the dollar index slipped from one-year highs and supported both the precious metal prices. We expect both precious metals could show some strength this week and gold prices could test $1784 per troy ounce and silver prices could test $23.20 per troy ounce levels again amid swift recovery in the base metal prices last week,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“At MCX, Gold has support at 46880-46720 and resistance at 47220-47400; silver has support at 61300-60900 and resistance at 62220-62800,” he said.
 
Jain suggests buying gold around 46900 with a stop loss of 46660 for the target of 47400 and silver around 61300 with a stop loss of 60800 for the target of 62500.

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Technical Indicators:

Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades marginally higher near $1760/oz after a 0.1% decline in previous session. Gold is rangebound as support from choppy US dollar post mixed US non-farm payrolls report is countered by higher bond yields which have jumped to June highs.

Amid other factors, supporting gold is rising inflation concerns and growth worries however ETF outflows show continuing exodus by investors.

Gold’s sharp retreat from Friday's high shows lack of confidence in the bulls however price may remain supported by increasing challenges for the US and global economy.

Expert: Sandeep Matta, Founder TRADEIT Investment Advisor

Gold prices jumped during the initial trading hour post the release of weaker job data which was a huge miss of over 1,90,000 jobs than the expected count of 5,00,000 non-farm jobs.  

The employment report may potentially put a break in the Federal Reserve's plan to shift its monetary policy before the end of the year; however, the precious metal has lost most of the gains and closed only marginally up.

Precious metal is currently in the grip of bears and facing strong resistance around $1780/oz. The long-term outlook is positive and participants should look for buying opportunities at dips.

Key level for GOLD Dec Contract – 47087
Buy Zone Above – 47100 for the target of 47250-47365
Sell Zone Below – 47050 for the target of 46937-46818

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

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

December Gold closing price 47037, Support 1 - 46900, Support 2 - 46700, Resistance 1 - 47200, Resistance 2 - 47350.

December Silver closing price 61801, Support 1 - 61200, Support 2 - 60700, Resistance 1 - 62300, Resistance 2 - 62800.

(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.)