Gold prices fall nearly Rs 1,100 today after previous week's nearly Rs 3,700 per 10 gm gain last week
Gold prices in Monday's trade (November 25) saw a sharp cut of over 1 per cent or nearly Rs 1,100 per 10 gm after the previous week's sharp rally which led the gold to jump to nearly Rs 77,000 per 10 gm level on the MCX.
Gold price decline
On the MCX, gold December futures were down 1.26 per cent or Rs 980 per 10 gm to Rs 76,636 per 10 gm. In the previous session on Friday, gold prices settled at Rs 77,616 per 10 gm.
24K gold down nearly Rs 1,090
24K gold in today's session quoted at Rs 78,550, while in the earlier session it closed at Rs 79,640 per 10 gm.
Gold's last week gain highest in this year
Gold and silver gained last week and gold posted more than 5.0% gains last week and which was highest weekly gain in a year. Gold also hit fresh life-time high against the Euro as Euro slipped to 2-year lows against the U.S.
Present downside partly supported by decline in safe-haven appeal
The Russia-Ukraine war which started on February 22, 2022, has completed more than 1000 days, and still, it is impacting the bullion market to a great extent. Gold and silver saw safe-haven flows last week, and rising tensions between Russia and Ukraine caused renewed unease in the markets last week.
Nonetheless, experts expect a dip in safe-haven demand.
Near term gold price outlook
Dr. Renisha Chainani, Head Research - Augmont - Gold For All held that we will likely see profit-booking and consolidation in gold prices this week as prices have run up too far.
Demand may wane going ahead
I now anticipate impending buying exhaustion this week in precious metals, iterates Renisha.
Dollar index and higher US yield weigh
However, the dollar index hit 2-year highs and crossed 107 marks last week and the U.S. 10-year bond yields also sustaining above 4.40% and limiting gains of precious metals.
Gold prices likely to be volatile
Manoj Jain- Director- 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 geo-political tensions but it could hold its key support levels of $2,634 and $29.88 per troy ounce levels respectively on a weekly closing basis."
Gold price support and resistance level
Jain said gold has support at $2694-2670, while resistance at $2728-2745 per troy ounce and silver has support at $31.05-30.70, while resistance is at $31.60-31.88 per troy ounce in today’s session. At mcx, gold is having support at 77330-77040 and resistance at 77880-78220 while silver is having support at 90150-89500 and resistance at 91400-92200.
Trading levels for gold and silver
Jain suggests buying gold on dips around 77300 with a stop loss of 77040 for the target of 78000 and also suggest buying silver on dips around 90300 with a stop loss of 89650 for the target of 91800.