Gold prices recover after falling Rs 5,000/10 gm in 10 days; up over Rs 700 at Rs 74,667/ 10 gm
Gold prices after a sharp decline over the last few days have started to recoup losses.
Gold prices in Monday's trade showed resilience and were up a significant nearly 1 per cent as dollar stalled its gaining streak primarily. The sharp losses in gold have now been arrested which came on the back of continuing strength in the dollar and Bitcoin's major run-being promoted by Trump.
Gold prices futures
In the futures market after opening in the green, the precious yellow metal has been able to maintain its mojo. At the last count, gold December futures were up 0.98 per cent or Rs 721 at Rs 74667 per 10 gm.
Spot gold in the domestic markets
As per the MCX site, in the domestic markets in Ahmedabad, spot gold was retailing at Rs 73,281 per 10 gm on November 15.
Internationally gold climbs after seeing its worst weekly fall in over 3 years
Internationally spot gold was up over 1 per cent to $2,597 per ounce at the day's high. This is despite the Fed's recent hawkish comments that may lead to a drag in the sheen of the precious yellow metal.
From its peak of $2801 on 31st Oct, the metal has lost over $250 or approximately 9 per cent, making this the most sustained downturn since the start of the month. Silver has lost $5 almost 15 per cent, falling from $35 to $30.
Gold price next move to be based on interest rate cues
Even as much of the macro data is out and there is a view that the Fed will still take on to a rate cut in the next meet, the likely cues on interest rate path will govern gold price movement.
Geopolitical unrest also favouring gold bulls
In the most recent incident over the weekend, US President Joe Biden permitted Ukraine to strike inside Russia using US Army Tactical Missile Systems. Following Moscow's deployment of North Korean foot troops to bolster its military, the decision was made to permit the use of long-range US weaponry inside Russia. In light of the ongoing dispute between Israel and Iran, markets are still cautious about a possible escalation of tensions between Russia and Ukraine, which is causing safe-haven flows into the shiny metal.
Gold price to rebound
Dr. Renisha Chainani, Head Research - Augmont - Gold For All held that renewed geopolitical tensions will overcast the Trumponomics and precious metals prices will rebound again this week.
Gold price short term support and resistance
Renisha added that gold prices have made a short-term bottom now and are expected to rebound towards Rs 75000 and Rs 77000 and silver to Rs 92000 and Rs 95000.