Gold Prices Today: Precious metals to remain range-bound following FOMC minutes, support around Rs 52,500

Gold, gold prices

Gold inched up on November 25 in the international markets, enroute to a weekly gain, buoyed by the dollar's retreat on a perceived dovish tilt in the US Federal Reserve's interest rate hike strategy.

Spot gold gained 0.2 percent to $1,758.41 per ounce by 0223 GMT, and was up 0.5 percent so far this week. US gold futures rose 0.7 percent to $1,758.30.

At 10:23 am, gold contracts were trading 0.01 percent higher on the Multi-Commodity Exchange (MCX) at Rs 52,675 for 10 grams. Silver shed 0.15 percent at Rs 61,901 a kilogram.

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Gold and silver prices on November 24 settled on a positive note in the international markets. Gold December futures contract settled at $1,755.10 per troy ounce, up by 0.54 percent and silver December futures contract settled at $21.37 per troy ounce, up by 0.001 percent. Domestic markets also settled on a positive note.

We expect gold and silver to remain firm. Gold could test $1780 per troy ounce and silver could test $22 per troy ounce levels. Gold has support at $1744-1732, while resistance is at $1768-1780 per troy ounce. Silver has support at $21.00-20.74, while resistance is at $21.70-22.00 per troy ounce.

At MCX, gold has support at Rs 52500-52330 and resistance at Rs 52820-53000 while silver has support at Rs 61550-61100 and resistance at Rs 62400-62900. We suggest buying gold on dips around Rs 52550 with a stop loss of Rs 52380 for target of Rs 52850 and silver around Rs 61600 with a stop loss of Rs 61100 for target of Rs 62600.

Precious metals prices remained firm after FOMC minutes released yesterday indicated a slower pace in interest rate hikes for the coming meeting. The US dollar index remained down 0.35% yesterday, attracting investors toward precious metals. The US benchmark Treasury yield extended losses and supported precious metals prices. Thanksgiving day in the US may keep the trend range bound in bullion.

However, bias in bullion looks positive at the current levels. Technically, the trend in precious metals may remain range-bound to the upside. Gold has support at Rs 52500 and resistance is at Rs 53200. Silver has support at Rs 61500 while resistance is at Rs 62800.