Gold prices edged up on November 25 as the dollar eased slightly. But comments from US Federal Reserve policymakers, suggesting the central bank could accelerate stimulus tapering, weighed on the metal and kept it well below the key $1,800 mark.
On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.25 percent to Rs 47,556 for 10 grams at 9.35am on November 25. Silver futures gained 0.43 percent to Rs 62,905 a kilogram.
Comex gold trades modestly higher near $1793/oz after a near-flat close on November 24. Gold has edged up after taking support near $1780/oz level. Pause in the US dollar index and bond yields has lent support to the metal. FOMC minutes confirmed that Fed officials are worried about inflation and are ready for monetary tightening measures. “It was anticipated and, hence, we did not see much reaction from the US dollar and yields,” said Ravindra Rao, CMT, EPAT, VP - Head Commodity Research, at Kotak Securities.
Amid other factors, gold ETF investors also moved to sidelines, awaiting fresh triggers. Gold is off the lows, however, a sustained rise is difficult with the US dollar still on a firmer side, he said.
Trading Strategy
Abhishek Chauhan, Head of Commodity & Currency, Swastika Investmart
The dollar, which moves opposite to gold, is getting good strength, putting pressure on gold and silver prices. Precious metal prices are looking oversold at these levels and a bounce towards resistance levels is expected in today’s session. On the MCX, gold has a resistance at Rs 47,800 and support at Rs 47,300.
Ravi Singh, Vice President & Head of Research, ShareIndia
Comex gold prices remained subdued as robust US economic data lifted the dollar and Treasury yields ahead of minutes from the Federal Reserve’s November meeting that could provide cues on future interest rate hikes. The government’s reported proposal to hike GST on gold jewellery to 5 percent from 3 percent will also be a setback to the rebounding jewellery industry in India. We expect gold prices to remain weak till it crosses the level of Rs 47,700 on the MCX.
Buy zone above - Rs 47,700 for target of Rs 48,000
Sell zone below - Rs 47,300 for target of Rs 47,000
Amit Khare, AVP- Research Commodities, Ganganagar Commodity
Yesterday, December Gold made a high of Rs 47,674 and then made a low of Rs 47,253. Silver made a high of Rs 63,029 and then made a low of Rs 62,374. We see profit-booking in bullions since the last five-six trading sessions. Now the current levels are the best prices for short-term investors. As per technical chart, the overall structure of gold and silver look positive, momentum indicator RSI also indicates the same on an hourly chart and trading at oversold zone. So, short-term investors are advised to create fresh longs on small dips near given support levels, traders should focus important technical levels.
December Gold closing price Rs 47,438, Support 1 - Rs 47,200, Support 2 - Rs 46,900, Resistance 1 - Rs 47,670, Resistance 2 - Rs 48,000.
December Silver closing price Rs 62,635, Support 1 - Rs 62,200, Support 2 - Rs 61,700, Resistance 1 - Rs 63,000, Resistance 2 - Rs 63,520.
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