Gold prices slipped on November 28 in the international markets, as a stronger US dollar made the greenback-priced metal more expensive for buyers holding other currencies.
Spot gold was down 0.2 percent at $1,752.66 per ounce, as of 0016 GMT. US gold futures fell 0.1 percent to $1,751.80.
At 10:03 am, gold contracts were trading 0.21 percent lower on the Multi-Commodity Exchange (MCX) at Rs 52,433 for 10 grams. Silver shed 0.43 percent at Rs 61,410 a kilogram.
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Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver prices gained last week post dovish remarks from the US Fed officials in the November month meeting minutes. The US Fed officials signalled the slow pace of interest rate hikes going ahead, which pushed the dollar index and the US bond yields lower and supported precious metal prices. Gold and silver also gained due to geo-political tensions and mixed economic data released last week. Gold prices entered backwardation on Friday; spot gold prices traded at higher levels than futures, a phenomenon known as backwardation which indicates that near term demand for the gold is increasing.
We expect gold and silver to remain volatile this week ahead of the US quarterly GDP data and ADP non-farm employment data. Gold has support at $1734-1720 while resistance is at $1755-1764. Silver has support at $20.88-20.65, while resistance is at $21.42-22.58. In rupee terms gold has support at Rs 52,420-52,250, while resistance is at Rs 52,680, 52,820. Silver has support at Rs 61,250-60,680, while resistance is at Rs 62,100–62,340.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices on November 25 settled on a mixed note in the international markets. Gold December futures contract settled at $1,755.00 per troy ounce, down by 0.01% while silver December futures contract settled at $21.48 per troy ounce, up by 0.53%. Due to strength in the rupee, domestic markets settled on a slightly weaker note.
We expect gold and silver to remain volatile this week ahead of the US quarterly GDP data and ADP non-farm employment data and continue to hold their respective support levels. Gold has support at $1744-1732, while resistance is at $1768-1780 per troy ounce. Silver has support at $21.20-20.88, while resistance is at $21.80-22.00 per troy ounce.
At MCX, gold has support at Rs 52920-52800 and resistance at Rs 53220-52450 while silver is having support at Rs 62660-62200 and resistance at Rs 63700-64250. We suggest buying silver on dips around Rs 62800 with a stop loss of Rs 62300 for target of Rs 64000.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
After witnessing a short pause during the previous week, gold prices were back in positive territory, concluding the week with gains of over 1 percent. The dollar, a safe haven alternative, had risen as a rise in COVID-19 cases in China, which fueled concerns about the future of the global economy, thus the price of the yellow metal did start the week on a lower note.
The possibility that the US Federal Reserve will increase interest rates by 50 basis points at its next meeting drove the dollar higher. However, a dip in the dollar index and the release of the US Fed meeting minutes, which likely indicated that the rate hike pace will slow down in the forthcoming meetings, helped the yellow metal march higher and ultimately end on a winning note.
The upside in gold is likely to be limited, given the anticipation that, the US Fed in its upcoming meeting would hike the interest rates by 50 basis points.
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