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Last Updated : Dec 02, 2019 09:49 AM IST | Source: Moneycontrol.com

Gold price today: Yellow metal dips on strong USD; likely to reclaim 38,000 in December

On a monthly closing basis, Gold closed around 1.25 percent lower in November from previous month in the domestic markets. Prices tested lows of Rs.37,477 during the month before closing at Rs.38,020 per 10 gram.


India Gold futures slipped on December 2 on a strong dollar and uncertainty over US-China trade truce, but for the month of December, the yellow metal should be able to reclaim 38,000, suggest experts.

Gold prices were quite volatile last month due to statements on trade war from the United States and China, civil unrest in Hong Kong, better than expected US quarterly GDP data and downbeat manufacturing numbers from across the global economies.

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On a monthly closing basis, Gold closed around 1.25 percent lower in November from previous month in the domestic markets. Prices tested lows of Rs.37,477 during the month before closing at Rs.38,020 per 10 gram.

Experts feel that the ongoing trade war between the US and China has shaken the global economy and supported bullion prices. In the international market, Gold prices strongly held $1,450 per troy ounce and closed around $1,470 per troy ounce.

“As far as gold price move is a concern in the month of December it always gives shaky move in the month of December due to year ending in most of the countries and holidays,” Manoj Kumar Jain, Director at IndiaNivesh Commodities told Moneycontrol.

“In the coming month looking to various global events like OPEC meet, UK election, US Fed policy meet, US-China trade deal, civil unrest in Hong Kong will continue to keep gold prices volatile. We expect gold prices will strongly hold its key support of $1,450 at Comex division and Rs.37,500 per 10 gram in domestic markets,” he said.

Kumar further added that he expects gold prices to show some strength in the month of December if prices crossed $1,484 per troy ounce in Comex division and Rs38,330 in domestic markets. Once this barrier is crossed, we expect further strength in the prices towards $15,00-15,20 in international markets and Rs38,600-38,800 in domestic markets.

Track live Gold price here

Trading Strategy:

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February contract showed a sharp momentum in Friday’s session and formed a bullish candlestick pattern on the daily chart. This suggests bulls are back now.

International Gold prices have managed to cross above $1,460 levels and this suggests the trend has reversed on the upside and now target can be expected towards $1,475 levels.


MCX Gold has given a positive confirmation as it took out 37,850 levels on a closing basis. The 20-periods of EMA has given a positive crossover above $50 periods EMA.Intraday strategy: MCX Gold February is a buy in the range of 38,000-37,950 with a stop loss of 37,840, and a target can be placed around 38,200 levels.

Expert: Hareesh V, Head Commodity Research at Geojit Financial Services

Gold in MCX platform traded in a narrow range of Rs 38,540-37,482 per ten grams in November. For the month of December, Gold prices likely to be traded in a tight range initially, but expect liquidation pressure once the trade-related worries completely resolved. Also, year-end profit booking cannot be ruled out in the counter.

Factors like the recent trade optimism, gain in the equity market, moderate demand from key consumers like China and India, unchanged central bank holdings and limited hedge funds participation may influence the sentiments.

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 2, 2019 09:49 am
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