India Gold MCX December futures were trading flat but above Rs 49000 levels, tracking muted trend seen in the international spot prices.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

International Gold is set for its biggest weekly jump in six months, as high U.S. consumer prices drove interest in the metal as an inflation hedge, said a Reuters report.

See Zee Business Live TV Streaming Below:

The metal is on track to its biggest weekly gain since May 7, rising 2.3 per cent so far, said the report.  The dollar index soared to its highest since July 2020, pressuring bullion by increasing its cost to buyers holding other currencies.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.26 per cent lower at Rs 49,090 per 10 grams at 0930 hours. The December silver futures were trading 0.23 per cent lower at Rs 66,811 a kilogram.

Gold and silver extended its gain after hotter than expected U.S. inflation data. Both precious metals settled on a positive note in the international markets.

Gold December futures contract settled at $1863.90 per troy ounce, and silver December futures contract settled at $25.30 per troy ounce. Both the precious metals settled on a positive note in the domestic markets.

Gold and silver extended their gain after inflation in the United States hit 31-year highs. Gold reached a five-month high and silver also reached three-month highs after a long consolidation.

“Despite a strong run up in the dollar index in the last two sessions gold and silver shined. We expect both the precious metals to remain firm in coming sessions and gold is expected to test $1920 per troy ounce and silver could also test $26.80 per troy ounce in the short term,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1850-1832 per troy ounce and resistance at $1878-1892 per troy ounce; silver has support at $25.00-24.80 per troy ounce and resistance at $25.55-25.88 per troy ounce.

“At MCX, Gold has support at 49000-47770 and resistance at 49440-49700; silver has support at 66500-66100 and resistance at 67400-68100 levels,” he said.

Jain suggests buying gold on dips around 49000 with a stop loss of 47770 for the target of 49700 and silver around 66400 with a stop loss of 65800 for the target of 68000.

Technical Indicators:

Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades marginally lower near $1860/oz after a 0.8% gain yesterday.

Gold has stalled near June highs as support from increased demand as an inflation hedge and choppiness in equity markets is countered by persisting strength in the US dollar amid expectations that Fed may act soon.

ETF’s saw net inflows however the pace is marginal which shows a lack of investor interest. Although Gold has paused after sharp gains in the last few sessions the momentum remains positive.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold & silver prices ended higher on Thursday despite a stronger U.S. Dollar.

Prices continued to gain support after strong U.S. consumer price data prompted a rush into the precious metal seen as a hedge against inflation.

The only factor stopping prices to move even more higher is strength of the U.S Dollar.

Domestic gold prices could start with small cuts this Friday morning, tracking a weak start in overseas prices.

Technically, if MCX Gold December trades above 49169 it could test the resistance zones at 49427-49638 levels. Support zones is 48958-48700 levels.

International silver prices have started weak this Friday morning in Asian trade.

Technically, if COMEX Silver December trades above $25.104 levels, it could witness a upside momentum up to the resistance zones at $25.562-$25.824 levels. Support zones is at $24.842-$24.384 levels.

Domestic silver prices could start weak this Friday morning, tracking weak overseas prices.

Technically, if MCX Silver December trades above 66600 it could test the resistance zones at 67385-67804 levels. Support zones is at 66199-65432 levels.  

Expert: Dr. Ravi Singh, Vice President & Head of Research at ShareIndia

In the recent FOMC meeting, the tone of Fed was slightly dovish and the US central bank signalled to reduce bond purchase by $15 billlion/month which is not considered to be aggressive.

Gold prices are continuing the bullish trend due to this dovish expectation. We advise investors to keep a buy on dips policy in gold till a clear direction from Fed.

Buy Zone Around - 48900 for the target of 49500
Sell Zone Below - 48600 for the target of 48300

(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.)