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Last Updated : Dec 13, 2019 02:38 PM IST | Source: Moneycontrol.com

Gold price today: Yellow metal dips on reports of US-China trade deal

Experts feel that Gold and Silver prices could show some extreme volatility on Friday, amid the possibility of a trade deal and victory of the ruling party in the UK could put pressure on gold prices.

India Gold February futures dipped on December 13 after media reports suggested that Washington and Beijing had reached an interim trade deal and averted a fresh round of US tariffs, boosting appetite for riskier assets.

A wave of trade relief lifted global equities following reports that the United States has agreed to reduce some tariffs and delay a tranche of tariffs as part of a "phase-one" deal, said a Reuters report.

Experts feel that gold and silver prices could show some extreme volatility on Friday, amid the possibility of a trade deal and victory of the ruling party in the UK could put pressure on gold prices. Gold can be sold in the range of 37600-37650.

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Trading Strategy

Expert: Manoj Kumar Jain, Director, IndiaNivesh Commodities

Gold could test support levels of 37,400-37,300, and going forward, 37,740 is likely to act as a major resistance. A hold above this level could give some strength.

Silver prices are expected to trade in a range of 43,400-44,000 and expected to hold key support of 43,400 levels.

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February moved sharply moved lower from the high of 38,068 to the low of 37,470 levels in the last session on the back of Trump's positive comment on the trade deal.

In LBMA Gold, prices fell violently from $1,486 to a low of $1,465 levels. This has formed a bearish candlestick pattern with a huge spike on the upside. The reversal has taken place from the channel resistance which is significant.

On the upside $1,476 is the resistance and $1,458 is the next support. MCX Gold 60 mins chart shows that after the sharp fall prices are stabilizing near the support zone and hence trend will remain in sell on rallies mode.

On the upside 37,710 will act as resistance. Break of 37,480 will take prices towards 37,320 levels.

Intraday strategy: MCX Gold February is a Sell in the range of 37,600-37,650 with 37,710 as a stop loss, and a target of 37,400 levels.

Expert: Jateen Trivedi | Sr. Research Analyst - Commodity & Currency at LKP Securities

Gold prices fell on Friday after sources said Washington and Beijing had reached an interim trade deal and averted a fresh round of US tariffs.

On the daily chart, Gold witnessed selling pressure after touching 38000 on the back of a short impacted tweet from US Pres. Donald Trump “Getting very close to Big Deal with China” (Signed deal not yet confirmed) sending the safe heaven Gold in panic sell-off after a smart rally was witnessed towards 38,000.

Prices overall are trading in the range-bound market between 37,500-38,500. If the prices start trading below the important support of 37,500 constantly then we see another leg of short selling which can take prices to 37,000 to 36,750 in the short term.

For the day 37,600-37,750 will act as resistance whereas 37,480-37,400 as supports.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Dec 13, 2019 09:38 am
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