Gold price today: Yellow Metal down on trade optimism; buy on dips for target of Rs 38,500

Gold futures fell in early trade on November 5 as hopes of a US-China trade pact bolstered the dollar and increased appetite for riskier assets. Gold December futures were trading with a negative bias at Rs 38,375 per 10 gram at 0910 hours IST. Experts feel the trend in gold prices witnessed some profit-taking on the rise in US dollars. In the domestic markets, the level of 38,300 on MCX should hold, and investors should look at buying on dips for a target of 38,500. US equity hit record high on trade deal hopes with China, and Gold and Silver prices saw some profit-taking in the international market as dollar index recovered from crucial support levels of 97. “Spot Gold closed around $1,510 per Troy ounce and silver closed around $18.06 per troy ounce. Gold and Silver closed with moderate gains in the domestic market due to weakness in rupee. Gold closed around 38450 and silver closed around 46,600. Both the precious metals test crucial resistance in the domestic market of 38,500 and 46,800 respectively,” Manoj Kumar Jain, Director at IndiaNivesh Commodities told Moneycontrol. “Gold can buy around 38,300 with a stop loss of 38,180 for the target of 38,500. Silver can be bought around 46,400 with a stop loss of 46,200 for the target of 46,800,” he said. Track live Gold price hereWhat should investors do?Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities On the daily chart, Gold traded with minor gains holding on to important trading level 38,176 which is 20-days EMA, showing signs of some uptrend is still intact. Gold on a short term basis has important supports at 37,850 which is 50-days EMA support. Technical indicator MACD is still suggesting flat to positive trend can be seen for few sessions ahead. 38,600-38,850 will act as an immediate point of supply zones. Silver prices closed on flat to positive note as it held on to imp 20EMA (46,050). A base support range of 42,500 – 44,500 is seen on the charts which looks unlikely to be broken on the downside. Technical indicator MACD is suggesting flat to positive trend can be seen for few sessions ahead. 47,050-48,000 will act as supply zone & 44,600-45,000 acts as demand zone for Silver Experts: Aditya Agarwal, Senior Manager, YES Securities Gold has entered its Wave 4 sideways consolidation taking the shape of an Ascending Triangle pattern with price knocking at the breakout line of the pattern placed at 38,670. It coincides with 61.8% Fibonacci retracement level placed at 38,700.

Therefore, a breakout from the Ascending triangle pattern backed by higher volumes will resume the upward journey commencing the final leg of 5 waves up move i.e. wave 5 which can take the precious metal to levels of 40,200 gradually. Moreover, a close beyond 38,700 will also trigger a double top breakout on a point & figure chart giving a vertical count target of 40,400. On the weekly time frame, RSI has formed a positive reversal with respect to the price which suggests that the trend remains upward bias. 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.