Sell gold December month expiry contract on break below 30548 for target of 30207-29987 with closing stop loss above 30760
International gold prices are hovering around $1,233-1,227 range even as fresh directions are awaited from key events such as G-20 summit and Fed meeting in December. Domestic prices are under pressure from continued strength in Indian rupee.
US dollar index has surged to 97.53 in November due to the expectation of an increase in interest rates which have pulled investor money out of other currencies and positive US economic data supporting safe-haven appeal for the dollar instead of gold.
Gold will get further direction from the next meeting which falls on December 18 and December 19.
US President Donald Trump and Chinese President Xi Jinping are to meet at the G20 summit in Buenos Aires to discuss trade issues, and market watchers will be waiting to see if the two largest economies in the world will ease trade tensions.
Recovery in Indian rupee continues and weighing on gold prices after a fresh decline in crude oil prices last week, focus now shifts towards RBI meeting scheduled for December 5. USDINR may drop to 200-day moving average at 68.50 below 71.10 in the near term.
MCX Gold December month expiry contract which was consolidating in range of Rs 30,600-31,100 till last week, has broken key support around Rs 30,600 and has registered a low of Rs 30,548. Still, the weekly trend is looking negative unless the counter closes above 20-day moving average at Rs 31,164, and fresh selling opportunity may arise below Rs 30,548 towards the next level of support at Rs 30,207 and Rs 29,987.
Sell gold December month expiry contract on break below Rs 30,548 for a target of Rs 30,207-29,987 with a closing stop loss above Rs 30,760.
The author is chairman of ABans Group of Companies.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.