Gold prices in India extended rally to hit a two-month high on November 8 as a retreating dollar bolstered the precious metal’s appeal.
On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.3 percent at Rs 48,117 for 10 grams at 9.34 am. Silver futures were also up 0.6 percent at Rs 64,717 a kilogram.
On Friday, gold and silver prices settled on a positive note in the international market. Gold December futures contract settled at $1,819.95 per troy ounce, up by 1.47% and silver December futures contract settled at $24.25 per troy ounce, up by 1.42%. Domestic markets also settled on a positive note. Gold December futures contract settled at Rs 47,972 per 10 grams with a gain of 0.88%, and silver December futures contract settled at Rs 64,332 per kilogram with a gain of 0.33%. We expect both the precious metals to remain positive this week and gold prices could test $1850 per troy ounce levels again, said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
"Any dips in the prices would be a buying opportunity in both the precious metals. Gold has support at $1804-1792, while resistance at $1832-1845 per troy ounce. Silver has support at $24.00-23.70, while resistance is at $24.50-24.84 per troy ounce," he said.
"At MCX, gold has support at Rs 47770-47650 and resistance at Rs 48100-48330 while silver has support at Rs 64000-63660 and resistance at Rs 64800-65220. We suggest buying gold on dips around Rs 47770 with a stop loss of Rs 47550 for the target of Rs 48180.
Trading Strategy
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher near $1820/oz after a 1.3% gain in the previous session. Gold trades higher supported by drop in US bond yields as Fed decided to take a gradual approach on monetary tightening. Also supporting price is inflation concerns. However, weighing on price is upbeat US jobs report, continuing strength in equity markets and ETF outflows. Gold has rallied sharply in last few sessions amid lack of any aggressive move by Fed but may struggle to build on the gains amid improved risk sentiment.
Amit Khare, AVP- Research Commodities, Ganganagar Commodity
On the Multi-Commodity Exchange (MCX), December gold contracts closed up by 0.88% at Rs 47,972 for 10 grams while December contract Silver futures closed at Rs 64,332 a kilogram, up 0.33%. We saw good buying in bullions at lower levels, which may continue for next few trading sessions. As per technical chart both metals are ready for upside movement. Momentum indicator RSI also indicating the same on daily chart. So, traders are advised to make fresh buy positions in gold and silver on small dips, traders should focus important technical levels.
December Gold closing price Rs 47972, Support 1 - Rs 47700, Support 2 - Rs 47500, Resistance 1 - Rs 48200, Resistance 2 - Rs 48400.
December Silver closing price Rs 64332, Support 1 - Rs 64000, Support 2 - Rs 63500, Resistance 1 - Rs 65000, Resistance 2 - Rs 65650.
Ravi Singh, Vice President & Head of Research at ShareIndia
Gold MCX looks stronger on charts. As the demand surged during festive season, we may see stable buying in gold and silver. Fed Officials quoted that If inflation keeps rising at its current pace in the next few months, Fed policymakers may need to adopt "a more aggressive policy response" next year. We advises traders to create fresh long positions in gold and silver on dips.
Buy zone above - Rs 48000 for the target of Rs 48300
Sell zone below - Rs 47800 for the target of Rs 47600
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