Gold prices slipped from a more than two-month peak on November 10 as an uptick in the dollar hurt the bullion’s appeal. Spot gold fell 0.2 percent to $1,827.05 per ounce by 0255 GMT, after hitting its highest since September 3 earlier in the session.
On the Multi-Commodity Exchange (MCX), the gold contracts were down 0.14 percent to Rs 48,218 for 10 grams at 9.34 am. Silver futures were up 0.37 percent to Rs 64,807 a kilogram.
Gold gained on the fifth consecutive day as the members of the major central bank are expecting broader inflation than it had forecast earlier. The US Core Producer Price Index data stood weaker than anticipated which also supported the prices of the yellow metal.
The US long-term bond yield fell to 1.44 percent on the Fed’s dovish view which ramped up the investment demand for a safe haven. On the MCX, gold has resistance at Rs 48,300 and above this level it may test Rs 48,650-48,850 levels. The yellow metal has support at Rs 47,800, said Abhishek Chauhan, Head of Commodity and Currency at Swastika Investmart.
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Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver showed high volatility on November 9 amid both-way swings in the dollar index. Both the precious metals settled on a mixed note in the international markets. The gold December futures contracts were settled at $1,830.80 per troy ounce with a gain of 0.15 percent and silver December futures contracts were settled at $24.32 per troy ounce with a loss of 0.90 percent. We expect the gold prices to remain firm and, after crossing $1,832 per troy ounce, it could start fresh rally in the upcoming sessions towards $1,860-1,878.
Gold has support at $1,818-1,804 per troy ounce and resistance at $1,840-1,852 per troy ounce, while silver has support at $24.10-23.84 per troy ounce and resistance at $24.60-24.88 per troy ounce. At the MCX, gold has support at Rs 48,055-47,880 and resistance at Rs 48,440-48,700, while silver has support at Rs 64,220-63,800 and resistance at Rs 64,700-65,100.
We suggest buying gold around Rs 48,150 with a stop loss of Rs 47,920 for the target of Rs 48,550 and buying silver around Rs 64,100 with a stop loss of Rs 63,800 for the target of Rs 64,800.
Ravi Singh, Vice President & Head of Research at ShareIndia
Gold on MCX traded in a range-bound zone with an upward bias. Most of the indicators like RSI MACD and moving average are in the positive zone. The demand for gold is also expected to increase during this period. It may trade between Rs 48,250 and Rs 48,500.
Buy zone above - Rs 48,280 for target of Rs 48,500
Sell zone below - Rs 48,000 for target of Rs 48,080
Amit Khare, AVP- Research Commodities, Ganganagar Commodity
The gold prices were modestly higher and hit another two-month high in midday dealings on Tuesday. The yellow metal bulls are touting a US inflation report that did not tamp down worries about rising prices.
Yesterday, we saw some buying in bullions at lower levels, which may continue for the next few trading sessions. Gold hit a two-month high of Rs 48,311. As per technical chart, both metals are showing strength and momentum indicator RSI also indicates the same on the daily chart. Traders are advised to make fresh buy positions in gold and silver on small dips. Traders should focus on important technical levels.
December Gold closing price Rs 48,287, Support 1 - Rs 48,100, Support 2 - Rs 47,800, Resistance 1 - Rs 48,400, Resistance 2 - Rs 48,600.
December Silver closing price Rs 64,570, Support 1 - Rs 64,000, Support 2 - Rs 63,500, Resistance 1 - Rs 65,100, Resistance 2 - Rs 65,600.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.