Gold price today: Yellow metal down on trade deal hopes; buy on dips

India Gold December futures inched lower on November 25 as positive developments towards an interim trade deal between the United States and China fuelled risk-on sentiment.

International Gold prices touched their lowest in a week. Spot gold was down marginally at $1,461.02 per ounce, having fallen to its lowest since November 18 earlier in the session.

Gold December futures were trading with a loss of 0.13 percent at Rs 37,846 per 10 gram at 0920 hours.

Experts feel that markets are likely to remain volatile in the week; hence, investors can use buy on dips approach as the long term trend is still intact.

“Civil unrest in Hong Kong, trade deal odds between US-China and Fed hinting at a pause in interest rates in the next policy meet will keep bullion prices volatile this week. Gold holds $1470/37800 and silver holds $16.80/44400 levels last week,” Manoj Kumar Jain, Director at IndiaNivesh Commodities told Moneycontrol.

“We expect both the precious metals will continue to hold key support levels on a closing basis and further weakness is possible only when these support levels are breached,” he said,

Jain further added that a rally is expected only when crucial resistance of 38,330 on Gold, and 44,900 on Silver is breached on a closing basis.

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Trading Strategy:

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold December continued to trade with volatility within the narrow range. In Friday’s session, prices closed on a negative note at Rs 37,900 levels.

MCX Gold is intact within Bollinger bands on the daily chart and is trading below the middle band. We expect 37,900 and 38,300 as the near-term range.

Intraday strategy: MCX Gold December futures can be bought in the range of 37900-37850 with a stop loss of 37800, and a target could be placed at Rs 38,200 levels.

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

On the Daily chart, Gold traded flat on Friday, waiting for more triggers. Prices have been trading flat for a month now.

The ATR which is significantly low from 500+ in Sep19 to 364 keeps indicates signs of less of trending & more of a news based reaction market.

Prices keep trading near 20-Days EMA placed at Rs 38,043 and are holding 100-Days EMA placed at Rs 37,472 but majorly trading in the range of 37500-38400.

It is best to buy when the market is showing intraday lows, and sell when the market is showing intraday highs as the basing range-bound market can continue till the time there are no new confirmed triggers.

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