Gold prices stabilised on November 22 after hitting their lowest in nearly two weeks, as a retreating dollar lent some support to the metal. A hike in interest rates should reduce bullion’s appeal as higher rates raise the non-interest bearing metal’s opportunity cost.
On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.14 percent to Rs 49,109 for 10 grams at 9.45am on November 22. Silver futures gained 0.28 percent to Rs 66,419 a kilogram.
Gold prices plunge from five-month highs below $1,850 per troy ounce, while silver prices went below $25 per troy ounce once again. However, record global inflation and surge in COVID-19 cases supported the precious metal prices at lower levels. We expect both the precious metals to remain volatile this week. Gold is expected to hold its crucial support of $1,820 per troy ounce and silver could also hold $24 per troy ounce, said Manoj Kumar Jain, Prithvi Finmart Commodity Research.
Gold has support at $1,834-1,822, and resistance at $1,858-1,872 per troy ounce. Silver has support at $24.40-24.20 and resistance is at $24.88-25.10 per troy ounce. At MCX, gold has support at Rs 48,660-48,500 and resistance at Rs 49,055-49,280, while silver has support at Rs 65,220-64,700 and resistance at Rs 66,000-66,600. We suggest buying gold on dips around Rs 48,600 with a stop loss of Rs 48,330 for a target of Rs 49,055.
Trading Strategy
Ravi Singh, Vice President & Head of Research at ShareIndia
Gold prices have fallen in a rangebound zone since last few trading sessions as anticipated high and sustained inflation supports the prices, whereas reduced COVID cases have increased the investment in riskier assets once again. In the lack of any fresh trigger this week, we expect gold prices to trade between Rs 48,500 and Rs 49,300 with an upward bias. Gold has a strong resistance near Rs 49,500 levels. Any breakout above Rs 49,500 will start a new trading territory in gold prices.
Buy zone above - Rs 48,950 for target of Rs 49,300
Sell zone below - Rs 48,800 for target of Rs 48,600
Amit Khare, AVP- Research Commodities at Ganganagar Commodity
As per technical chart, the overall structure of gold and silver look positive, momentum indicator RSI also shows the same on the hourly chart. Traders are advised to create fresh longs on small dips near given support levels, traders should focus important technical levels.
December gold closing price Rs 48,828, Support 1 - Rs 48,650, Support 2 - Rs 48,450, Resistance 1 - Rs 49,000, Resistance 2 - Rs 49,200.
December silver closing price Rs 65,556, Support 1 - Rs 65,000, Support 2 - Rs 64,500, Resistance 1 - Rs 66,100, Resistance 2 - Rs 66,850.
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