India Gold February futures rose on Thursday tracking gains in the international Gold prices that breached $1,500, near the two-month peak as around signing of the 'phase one' trade deal between the United States and China.
US President Donald Trump said on Tuesday there will be a signing ceremony with the Chinese President Xi Jinping for the first phase of the agreement, said a Reuters report. “Beijing confirmed the news by saying they were in close touch with Washington for the signing,” it said.
On the MCX, gold contracts for February were trading higher by Rs 107, or 0.28 percent, at Rs 38,746 per 10 gram at 1220 hours.
Experts are of the view that Gold prices are likely to stay in momentum till the time trade deal is signed by both the US and China, but considering the face, gold prices are trading near resistance levels, some consolidation cannot be ruled out.
Gold gained more than 1 percent and Silver rallied more than 1.50 percent on Wednesday. Spot Gold prices closed above crucial resistance of $1500 per troy ounce and Spot silver prices closed above $17.70 per troy ounce.
“After downbeat US Richmond manufacturing index and uncertainty on signing first phase trade deal both the precious metals gained again and breached crucial resistance levels. At MCX Gold prices crossed key resistance of 38330 and silver prices crossed 46200 levels on Wednesday,” Manoj Kumar Jain, Director, IndiaNivesh Commodities told Moneycontrol.
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Expert: Jateen Trivedi, Sr. Research Analyst - Commodity & Currency at LKP Securities
Gold prices held steady on Thursday below a near two-month peak hit on Christmas eve, as investors await details of a trade deal signing ceremony between the United States and China.
On the daily chart, Gold traded positive on the back of concerns from China over US interference in Hong Kong Taiwan which are internal for them. The US and China would sign their so-called Phase one trade pact at the beginning of January, subject to not any renegotiation.
Prices overall are in a positive trend market bias. Prices can be in the bullish momentum till the time they are above 38,100 on a closing basis. For the day 38700-38850 will act as resistance whereas 38575-38485 levels are likely to act as supports.
Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities
MCX Gold February contract continued to move higher slowly and steadily on the back of rise witnessed in LBMA Gold spot prices in the last 2 sessions. However, now prices are trading at the crucial channel resistance zone which is placed at $1490-$1493 levels.
Thus one should be alert now. The 60-min chart of MCX Gold February suggests that prices are intact in upward moving channel and resistance of the same is placed at 38480-38500 levels.
Any move below 38,280 will suggests that correction has started. In case Gold breached 38,500 on the downside, a short call could be initiated in the range of Rs 38,380-38,420 with a stop loss of 38,500 and a target of 38,150 levelsDisclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.