Gold price today: Yellow metal trades higher after Trump's impeachment

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Indian Gold February futures rose on December 19 after the US House of Representatives voted to impeach President Donald Trump for abuse of power and obstructing Congress.

A 230 to 197 vote in the Democratic-majority House made the 45th US president just the third occupant of the White House to be impeached, a Reuters report said.

On the Multi Commodity Exchange, the gold contracts for February traded higher by Rs 37, or 0.10 percent, at Rs 37,949 per 10 gram at 0910 hours.

Gold and silver were trading in the range from the last three trading sessions. In the domestic market, the metals closed with a minor loss on December 18 but held on to key support levels, a positive sign.

Gold held Rs at 37,800 and silver at Rs 44,100. Gold is likely to trade in a range and a breakout above Rs 38,050 can add to further momentum, while a breach of Rs 37,720 can pile-up selling pressure, experts say.

“Both the precious metals are trading sideways after the first phase trade deal between the US and China and the thumping victory of Boris Johnson in the UK parliamentary election,” Manoj Kumar Jain, Director, IndiaNivesh Commodities, said in a Reuters report.

“We expect both the precious metals will continue to trade in the range and decisive break out of the range will give further direction to the prices. Gold is expected to trade in the range of Rs 37720- Rs 38050 and silver expected to trade in the range of Rs 44100- Rs 44750.”

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Trading Strategy

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

On the daily chart, gold witnessed flat moves on the back of official trade details numbers yet to be shared by both the US and China. A fresh round of negative news as the US House of Representatives voted to impeach Trump can push the gold prices up.

Overall, prices are trading in a range-bound market between Rs 37500 and Rs 38,500. Till the time prices are in this range, it is advisable to buy at lows and sell at highs, as trade-talk details are awaited.

For the day, Rs 37,990- Rs 38,050 will act as resistance and Rs 37,850- Rs 37,745 as supports.

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February has been in a consolidation mode on the back of a range-bound action in LBMA Gold Spot prices. The net trend is intact in $1,480-1,470 levels. We need to see where the breakout takes place.

The 60 mins chart shows that Rs 38,050- Rs 37,800 is the short-term range. We need break above or below support or resistance levels.

Intraday strategy: MCX Gold February Sell in the Rs 37,950- Rs 37980 range, with Rs 38,070 as stop loss and a target of Rs 37,800.

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