India Gold February futures edge higher on Friday tracking gains seen in the international Gold prices that rose to a near two-month peak. Prices notched $1,512.30 an ounce, their highest since Nov. 4 earlier.
The metal has gained about 18% so far this year and is on track for its best year since 2010, due mainly to the protracted US-China trade dispute and its impact on the global economy, said a Reuters report.
Beijing said on Wednesday it is in close touch with Washington on a trade deal signing ceremony, a day after U.S. President Donald Trump said that he and Chinese President Xi Jinping will have a ceremony to sign the recently struck trade deal, the report added.
On the MCX, gold contracts for February were trading higher by Rs 88, or 0.23 percent, at Rs 38,970 per 10 gram at 0920 hours.
At MCX Gold prices test 38,948 and closed around 38,860 levels. Silver prices tested 47,232 in intraday trading and close around 46800 levels.
Experts are of the view that the trend in Gold prices is likely to remain on the upside and investors should use dips to buy with a target of Rs 39,100.
“Gold and Silver prices extend rally on Thursday ahead of New Year holidays. Spot Gold in international market test $1512 per troy ounce and silver prices test $18 per troy ounce,” Manoj Kumar Jain, Director, IndiaNivesh Commodities told Moneycontrol.
“We expect both the precious metals remain firm and any downside correction will be the opportunity to buy again. Gold can be bought around 38,660 with a stop loss of 38,500 for the target of 38920. Silver can be bought around 46400 with a stop loss of 46000, and a target of 47100,” he said.
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Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities
MCX Gold February continued to move higher and closed on the positive note. This is on the back of up move in International Gold prices which has given upside breakout above $1500 levels. On downside, $1500 will act as support.
The 60-min chart shows that prices are intact in the upward moving channels and on the downside 38,720 will act as support. On the upside, it can move higher towards 39150 levels.
Intraday strategy: MCX Gold February Buy in the range of 38,850-38,800 with 38,700 as a stop loss and a target of 39,100 levels.
Expert: Jateen Trivedi, Sr. Research Analyst - Commodity & Currency at LKP Securities
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 38100 on a closing basis. For the day 38925-39050 will act as resistance whereas 38800-38675 as supports.
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