Gold price today: Yellow metal loses shine over US-China trade optimism

Gold December Futures came under pressure after optimism over US-China trade ties rose following a report of "constructive talks" over the weekend.

The United States and China had a high-level phone call on Saturday, Chinese state media Xinhua said on Sunday, but it gave no further details, said a Reuters report.

The two sides discussed each other's core issues for the first phase of an initial trade agreement, it said.

Gold December futures were trading with a loss of Rs 98 or 0.26 percent at Rs 37,896 per 10 gram at 09:20 hours IST.

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The precious metal continues to track US-China trade developments and their impact on financial markets.

“The signing of the trade deal will likely provide another trigger to sell gold, investors should also consider how the U.S.-China relationship will move beyond the phase-one deal, which may be affected by developments surrounding Hong Kong and Huawei, and could impact gold prices,” Jateen Trivedi, Sr. Research Analyst - Commodity & Currency at LKP Securities Ltd.

Gold is holding key support of $1,450 and Silver holds $16.60 on weekly closing basis. At MCX, Gold closed at 37,971 and Silver closed at 44,385 on Friday. Gold is expected to hold $1,450 per troy ounce and if prices sustain above $1,472 could test $1,484 levels again.

Trading Strategy:

Expert: Manoj Kumar Jain, Director at IndiaNivesh Commodities

MCX Gold is expected to hold key support of 37,500 levels if prices sustain above Rs 38,050 – the rally could extend towards 38,300 levels. Further weakness is possible only when prices close below 37,500 and in that case, it could test 37,300-37,100 levels.

Silver prices also expected to hold key support of $16.60 level, if it sustains above $17, in that case, it could test $17.24-17.40 levels. Further weakness is possible only when it closed below $16.60 levels and in that case, it could test $16.34-16.20 again.

MCX Silver is expected to hold key support of 44000 levels, and if prices sustain above 44400 could extend rally towards 44700-44850 levels.

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

Gold December contract failed to generate the momentum above 38,270-38,300 levels and had a gap-down opening in the previous session. Post that it remained under pressure and made bearish candlestick pattern.

International Gold has been trading in consolidation mode and there is no trend as such now but the inherent bias remains negative.

As long as 38,100 is intact on the upside, the trend will be negative for Gold. On downside move towards 37,700 is possible.

Intraday strategy: MCX Gold December sell in the range of 37,990-38,050 with a stop loss of Rs 38,120, and keep a target of Rs 37,750 levels

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

On the daily chart, Gold traded flat to negative in the previous session. Prices have been trading flat since a week and is consolidating near 20-Days EMA placed at Rs 38027.

Overall on the upside, the level of Rs 38,350-38,650 shall act as a supply zone, and 37250-37550 levels are likely to act as support.

For the day prices can be weak till the time they keep trading below 38050 on the lower side, and levels of Rs 37,800-37,750 will act as a support for the yellow metal.

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