Gold price today: Yellow metal breaks below 39K; adopt ‘buy on dips’ strategy

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Profit booking at higher levels pushed India Gold February futures below 39,000 on December 28, but investors could use buy on dips strategy as geopolitical concerns could push the demand for the yellow metal.

International Gold prices inched up on Monday, holding below a near two-month peak hit in the previous session, as investors hedged against risks in thin year-end trading after US military strikes in the Middle East, said a Reuters report.

On the MCX, Gold contracts for February were trading lower by Rs 87, or 0.22 percent, at Rs 38,993 per 10 gram at 0920 hours.

Gold and Silver prices gained last week amid the New Year holiday season. Gold and Silver prices reached fresh 7-Weeks high in the international market. Spot Gold closed at $1,513 per troy ounce and Silver prices closed at $17.80 per troy ounce in the international market.

At MCX, Gold prices crossed 39,000 mark and Silver prices closed above 46,800 levels. Weakness in the rupee also supported prices in the domestic market.

Experts are of the view that dips, if any, should be used to buy for a target of Rs 39,200-39,400 levels while Silver could extend rally towards 47,100-47.500 levels.

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Trading strategy:

Expert: Manoj Kumar Jain, Director, IndiaNivesh Commodities

At MCX, 38,770 is likely to act as a major support for Gold and if prices sustain above 39,000, the rally could get extended towards 39,200-39,380.

For silver, 46,400 is likely to act as major support and if prices sustain above 46,800, the rally could extend towards 47,100-47,500 levels.

Overall, the trend of both the precious metals are still firm and as long as it holds given crucial support levels, investors could deploy buy on dip strategy.

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February continued to move higher and closed on the positive note. This is on the back of LBMA Gold Spot prices which is trading near $1,514 levels. On downside $1,505 is the support.

The 60-min chart shows that prices are intact in the upward moving channel. On the downside 37,800 is likely to act as major support.

Intraday strategy: MCX Gold February Buy in the range of 39,000-38,950 with 38,840 as stop loss and target of 39,180 levels.
Expert: Jateen Trivedi, Sr. Research Analyst - Commodity & Currency at LKP Securities

Gold keeps cashing in the delays of signing between the two giants US & China. The US and China would sign their so-called Phase one trade pact at the beginning of January, subject to not any renegotiation.

Prices overall are in a positive trend market bias and can remain in a bullish momentum till the time they are above 38,100 on a closing basis. For the day 39,125-39,250 will act as resistance whereas 39,000-38,875 as supports.

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