India Gold MCX December futures trade higher on Tuesday following positive trend seen in the international spot prices amid weakness in the US dollar and U.S. bond yields which provided some support to the precious metal.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

See Zee Business Live TV Streaming Below:

Supporting gold by making it cheaper for buyers in other currencies, the dollar dropped to a two-week low against a basket of currencies, said a Reuters report.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.06 percent higher at Rs 47,320 per 10 grams at 0930 hours. The December silver futures were trading 0.55 percent higher at Rs 63,617 a kilogram.

Gold and silver prices showed some weakness on Monday despite favourable economic data points. Both the precious metals were settled on a slightly weaker note in the international markets.

Gold December futures contract settled at $1765.70 per troy ounce, and silver December futures contract settled at $23.26 per troy ounce. Both the precious metals were settled on a mixed note in the domestic markets.

The dollar index and benchmark 10-year bond yields in the United States diped on Monday after disappointing industrial production data for the month of September.

“Global equity markets are also showing profit taking from higher levels due to rising inflation. Higher energy prices could derail global economic growth in the coming quarters and support safe-haven buying in the precious metals once again,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect both the precious metals could show some strength in Tuesday’s session. At MCX, Gold has support at 47055-46920 and resistance at 47440-47700; silver has support at 62900-62500 and resistance at 63660-64100,” he said.

Jain suggests buying gold around 47150 with a stop loss of 46950 for the target of 47550 and silver around 63000 with a stop loss of 62500 for the target of 64000.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver prices ended marginally in the red on Monday.

Domestic gold ended marginally higher, while silver prices ended flat on Monday. Bullion Index ended flat on Monday.

A rise in U.S. Treasury yields dented its appeal, although a risk-off sentiment in wider financial markets limited losses for the metal.

Sentiment in wider financial markets remained weak as economic growth in China slowed, while a relentless surge in oil prices fuelled concerns about elevated inflation.

Domestic silver prices could start stronger this Tuesday morning, tracking overseas prices. Technically, the MCX Silver December range for the day is 61200- 64300.

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

Traders are advised to make fresh long positions in Gold and Silver near given support levels, and should focus on important technical levels given below for the day:

December Gold closing price 47291, Support 1 - 47200, Support 2 - 47000, Resistance 1 - 47500, Resistance 2 - 47700.

December Silver closing price 63266, Support 1 - 62800, Support 2 - 62300, Resistance 1 - 63750, Resistance 2 - 64400.

(Disclaimer: The views/suggestions/advice 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.)