Gold prices extend losses on ceasefire talks; MCX December gold futures at Rs 75,275/10 gm
Despite marginal gains in the international markets, gold prices continued to fall on the MCX on November 26, 2024.
Gold prices in Tuesday's session continued their losing streak for the second session in a row. On the MCX, December gold futures traded mildly lower by 0.05 per cent at Rs 75,275 per 10 gm.
Risk-on sentiment due to ceasefire talks leads to losses in gold
The sharp losses in the previous day's trade which extended to today were on account of ceasefire talks between Israel and Lebanon.
Gold December futures internationally
After seeing a steep drag of nearly 2.57 per cent, gold prices internationally saw some respite and traded marginally higher at $2,626.7 per ounce.
Gold price in spot market (24K)
In today's trade, gold price of 24K purity was down Rs 1,310 at Rs 77,240 per 10 gm.
Worst one-day losses in 2 years
As the safe-haven demand waned amid the ceasefire talks, gold prices in the previous session logged the worst fall of nearly 3 per cent.
Gold, silver prices fall
Gold and silver prices also corrected after President elect Trump’s selection of Scott Bessent as Treasury Secretary. His reputation as a fiscal hawk also pushed gold and silver prices lower.
Gold, silver prices remain supported
Amid the losses in dollar index as well as treasury yield, gold and silver prices will gain support at lower levels.
Prices to also gain support
Russia-Ukraine tensions could also support prices at lower levels.
Prices expected to remain volatile
Manoj Jain- Commodity expert- India Nivesh said, " We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, U.S. GDP data and Fed monetary policy meeting minutes but it could hold its key support levels of $2,588 and $29.88 per troy ounce levels respectively on a weekly closing basis."
Support and resistance levels for gold, silver
Gold has support at $2622-2604, while resistance at $2658-2680 per troy ounce and silver has support at $30.30-30.10, while resistance is at $30.84-31.15 per troy ounce in today’s session. AtMCX, gold is having support at 75000-74740 and resistance at 75660-76000 while silver is having support at 86800-86000 and resistance at 88500-89200
Avoid taking bet in gold and silver
Jain suggests traders should stay away from gold and silver in today's session and wait for some stability in the markets while long-term investors can add to the current market fall.
Gold prices to remain highly volatile; Fed minutes in focus today
Market participants currently regard the FOMC minutes as indicators of the upcoming rate-cut trajectory, fueling demand for the USD and providing the commodity with a further boost, adds Dr. Renisha Chainani, Head Research - Augmont - Gold For All.
Trade war offers support
Trade war impact has improved sentiment for gold. However, as trade war fears helped, gold prices later found support and rose as Donald Trump vowed to levy a 10% tariff on all imports from China and 25% on all goods entering the US from Canada and Mexico, added Chainani.