Experts feel that the trend could largely be on the downside and investors should use rallies to sell with a target of Rs 37,250 per 10 gm
Gold futures bounced back on November 8 after hitting a near one-month low on November 7 after China and the United States agreed to rollback tariffs as part of Phase 1 of the trade deal.
Gold December futures were trading with a positive bias at Rs 37,786 per 10 gram at 0920 hours IST. Silver December futures were up 0.4 percent at Rs 44,352.
On November 7, MCX Gold December contracts saw a sharp breakdown from its multiple support levels of Rs 37,900/10 gm with unusual volume activity. On the daily chart, it traded with a strong bearish sentiment. Bears dominated the day as the yellow metal breached its important 50-day EMA placed at Rs 37,850 on the downside.
Experts feel that the trend could largely be on the downside and investors should use rallies to sell with a target of Rs 37,250 per 10 gm.
“Daily momentum indicators MACD and RSI have given a negative crossover, which indicates negative breath in the counter,” Pritam Kumar Patnaik, Head Commodities, Reliance Commodities, told Moneycontrol. “Current market action suggests MCX Gold is likely to trade bearish. One can sell MCX Gold December on a rise to Rs 37,600-37.650 levels, with a stop-loss at Rs 37,750 for a target of Rs 37,250,” he added.
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities, sees Rs 37,800-37,900 acting as strong supply zones, with support at Rs 37,150-37,250 levels as MACD is still suggesting a flat trend with a negative bias for a few sessions.Silver prices closed negative on November 7 as selling pressure rose after it breached its 50-day EMA placed at Rs 45,450 on the downside. Bears controlled the day, resulting in the formation of a big red candle. Experts see Rs 44,500-45,000 acting as a strong supply zone going forward, with support at Rs 43,500-43,700 levels.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.