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.
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.
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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.
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.
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