Dollar strength drags bullion down on Tuesday; buying opportunity in Gold, Silver futures beckons, says analyst
MCX December Gold and Silver futures are expected to trade in a range according to a report by Motilal Oswal. It sees support at Rs 47,450-$7,200 and resistance at Rs 47,900-48,100. As for Silver futures, support is seen at Rs 63,100-62,700 and resistance is seen at Rs 64,200-64,600, this report said
Gold Price Today – Bullion was trading with weakness on Tuesday. The MCX Gold and Silver futures felt some heat as international prices corrected on the back of a stronger US Dollar and firmer treasury yields. At 6:25 pm, the MCX December Gold Futures were cheaper by Rs 278 per 10 gram from the Monday closing price while December Silver Futures fell by Rs 1221 per kg.
The yellow metal futures were trading at Rs 47,645, down almost 0.6 per cent. Meanwhile, Silver futures were trading at Rs 63,350, a 1.9 decline from the Monday closing levels.
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Today, the price of Gold fell below USD 1800 as US Dollar hit a 16-month high according to a Reuters report. The December Gold Futures were trading at USD 1789.6 on CME, down by USD 16.7 or 0.9 per cent. As for December Silver futures, the price was around USD 23.56, down by 73 cents or 3 per cent.
Spot Gold is expected to see support between USD 1785 and USD 1770 while the resistance between USD 1810 and USD 1820. Meanwhile, Spot Silver will find support between USD 23.70 and USD 23.55 and resistance at USD 24.10-24.25.
Investors and traders must be cautious ahead of the US PMI data while is expected later today.
Gold, Silver Intraday Trading Strategy
MCX December Gold and Silver futures are expected to trade in a range according to a report by Motilal Oswal. It sees support at Rs 47,450-$7,200 and resistance at Rs 47,900-48,100. As for Silver futures, support is seen at Rs 63,100-62,700 and resistance is seen at Rs 64,200-64,600, this report said.
Analyst Anuj Gupta sees this correction as a good opportunity for investors and traders to make a move. He recommends a buy in December Gold Futures at Rs 47,500 with a stop loss at Rs 47,200 while the price target at Rs 48,000. As for December Silver futures, buying is recommended at levels around Rs 63,000. He puts the stop loss at Rs 62,400 while the target price at Rs 64,500.
He said that both Gold and Silver futures were trading near their support levels and a bounce back is expected from here.
Gupta is Vice President (VP), Commodity and Currency Research at IIFL Securities.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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