India Gold February futures were steady on December 18 as mixed messages on the US-China trade deal countered positive economic data out of the United States.
“Gold steady as trade deal doubts offset positive US data. US manufacturing production rebounded strongly in November, while housing numbers rose higher than expected and permits for future home construction soared to a 12-1/2-year high,” said a Reuters report.
On the Multi Commodity Exchange, Gold contracts for February traded higher by Rs 17, or 0.04 percent, at Rs 37,957 per 10 gram at 0910 hours.
Gold and Silver prices traded steady on Tuesday in the international, as well as, the domestic market. Spot Gold closed around $1,476 and Silver closed around $17 per troy ounce in the international market.
MCX Gold prices retested the resistance of 37,920, and most experts expect the yellow metal is likely to face stiff resistance near 38,050. Traders could use rallies, if any, towards 30,000 to go short, suggest experts.
Trading Strategy:
Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities
MCX Gold February has been sideways with a positive bias in the last 2 days on the back of lacklustre movement in LBMA Gold prices.
LBMA Gold Spot has arrived near the resistance zone on the daily chart which is placed in the range of $1,480-1,485 levels. From here on, any break below $1,472 will be a bearish sign for a move towards $1,458 levels.
The 60-min chart shows that it is in a consolidation zone wherein 38,070 is the resistance, and 37,800 is likely to lend support.
Intraday strategy: MCX Gold February Sell in the range of 38,000-38,030 with 38,100 as a stop loss and target of 37,850 levels.
Expert: Jateen Trivedi, Sr. Research Analyst - Commodity & Currency at LKP Securities
Gold prices changed slightly as mixed messages on US-China trade deal countered positive economic data out of the United States.
On the daily chart, Gold witnessed flat to positive moves on the back of official trade details which are yet to come out from both US & China.
Prices are trading in a range-bound market between 37,500-38,500. As long as prices are trading in the range of 1,000 points it is advisable to buy at lows and sell at highs, as trade talks details are awaited.
For the day 37,950-38,050 will act as resistance whereas 37,825-37,745 will act as supports.
Expert: Manoj Kumar Jain, Director, IndiaNivesh Commodities
We expect Gold to face stiff resistance at 38,050 and if it sustains above this levels could fuel further strength towards 38150-38200. Else, it could test its support level of 37,800 again.
Silver also breached its resistance of 44,400, and if it sustains above this level, it could give further strength to the metal which could push it towards 44800-44900, else it could test the support level of 44,100 again.
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