Gold Prices Today: Experts expect profit booking in precious metals as investors eye G-20 meet, dollar movement

Gold, Gold Prices

Gold hovered near a three-month high on Tuesday in the international markets, as a top US central bank official's comment raised hopes that the Federal Reserve would adopt a less aggressive approach on rate hikes, while a stronger dollar kept gains in check.

Spot gold was steady at $1,770.70 per ounce, as of 0122 GMT, after hitting its highest since August 17 in the previous session. US gold futures fell 0.3% to $1,771.80 per ounce.

At 09:51 am, gold contracts were trading 0.21 percent higher on the Multi-Commodity Exchange (MCX) at Rs 52,831 for 10 grams and silver added 0.31 percent at Rs 62,665 a kilogram.

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Trading Strategy

Deveya Gaglani, Research Analyst, Axis Securities

Gold prices continued its winning streak for seven days in a row backed by a weaker dollar and a grim global outlook, which uplifted gold prices. It seems the stage is set for a multi-year bull run, as it waits for the right triggers to head northwards. On the daily chart, prices have touched 7-month high and it is placed above 20 and 60 days EMA, which is a positive sign for prices. The momentum indicator RSI is above 60 level, which indicates that momentum is strong for prices. Sustained buying above the Rs 52700 level may push prices higher towards Rs 53000 level or else prices may witness some profit booking at higher level and may retrace down till the Rs 52400 level.

Nirpendra Yadav, Senior Research Analyst at Swastika Investmart

Short-term trends in precious metals may remain on the upside. However, profit booking is expected in precious metals ahead of the G20 countries' meeting starting today. The US dollar index gained 0.61% yesterday keeping the upside limited in bullion. After three consecutive upside days in bullion, prices are trading near resistance levels. Gold has resistance at Rs 53100 and support at Rs 52200. Silver has resistance at Rs 63000 and support at Rs 61000.

Jigar Trivedi, Senior Research Analyst- Commodity & Currency at Reliance Securities

MCX Gold December futures appreciated by 384 points and closed higher for the third consecutive session at Rs 52,718 per 10 gram. The rally has happened on the back of the weak dollar and hopes of a smaller rate hike/ less aggressive approach by the US in the near future.

Having said this, Comex gold has advanced by $150 in last seven sessions hence we don't rule out possibility of a profit booking. We expect MCX Gold December futures to rise to Rs 52,850 per 10 gram but eventually profit booking may emerge.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver prices on Monday settled on a positive note in the international markets. Gold December futures contract settled at $1,776.90 per troy ounce, up by 0.15% and silver December futures contract settled at $22.11 per troy ounce, up by 1.44%. Domestic markets also settled on a positive note.

We expect gold to hold $1744 per troy ounce and silver could hold $21.50 per troy ounce levels. Traders this week will keep an eye on the G-20 meeting taking place in Bali. Outcomes of the G-20 meeting and movement of the dollar index could give further directions to precious metals. Gold has support at $1762-1750, while resistance is at $1788-1800 per troy ounce. Silver has support at $21.84-21.55, while resistance is at $22.34-22.60 per troy ounce.

At MCX, gold has support at Rs 51500-52330 and resistance at Rs 52880-53000 while silver has support at Rs 61900-61350 and resistance at Rs 63000-63650. We suggest buying silver on dips around Rs 62000 with a stop loss of Rs 61500 for target of Rs 63000.

(With agency inputs)

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