Gold prices inched up on October 19 as a decline in the US dollar and US bond yields provided some support to the precious metal.
On the Multi-Commodity Exchange (MCX), gold contracts were up 0.06 percent to Rs 47,319 for 10 grams at 9.24 am. December silver futures were up 0.52 percent to Rs 63,596 a kilogram.
Gold prices fell on October 18, down by Rs 741 to Rs 47,384 per 10 gram tracking a sharp fall on Friday in the global market. The precious metal was also pressured by surging 10-year Treasury yield and strength in the dollar.
Price of gold inched up in a rangebound trade on October 18 as the dollar index traded flat to negative. Meanwhile, silver price fell due to profit booking in industrial metals. Crude oil prices also retreated from current levels which may ramp up the bullish sentiment in the Dollar, which moves against the gold prices.
Prices of gold may witness selling pressure if they move towards the resistance of Rs 47,500. While it has support at Rs 47,000, below this price, it may test 46,600-levels, said Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart.
Trading Strategy
Manoj Dalmia, Founder and Director- Proficient Equities
Gold was in downtrend until recently but now bears are slowly getting exhausted and it might be entering into a bullish territory, pending confirmation. There is an overhung resistance of 100-day average for gold at Rs 47,650 levels and reversal of downtrend will be confirmed only upon closing above this mark. If that happens, one may buy Gold for higher prices like Rs 48,500 or beyond. November and December are also traditionally bullish for gold from the perspective of seasonality and hence a breakout from current level looks reasonable.
Ravi Singh, Vice President & Head of Research at ShareIndia
Gold futures traded marginally higher on October 18 taking cues from rising demand of gold, globally. However, the rising US Treasury yields is continuously putting pressure on Gold prices and capping the upward move. After the sharp profit booking, the outlook for gold is still positive and investors are advised to go long on every correction in gold futures.
Buy zone above - 47300 for the target of 47500
Sell zone below - 47100 for the target of 46900
Amit khare, AVP- Research Commodities, Ganganagar Commodity
Gold and silver prices were slightly down in lackluster midday US trading on October 18. On the Multi-Commodity Exchange (MCX), December gold contracts closed up by 0.17% at Rs 47,291 for 10 grams. December contract silver futures closed at Rs 63,266 a kilogram, down 0.008%. Overall technical charts of gold and silver are strong, momentum indicator RSI is also indicating the same, so traders are advised to make fresh long positions in gold and silver near given support levels, traders should focus important technical levels.
December Gold closing price 47291, Support 1 - 47200, Support 2 - 47000, Resistance 1 - 47500, Resistance 2 - 47700.
December Silver closing price 63266, Support 1 - 62800, Support 2 - 62300, Resistance 1 - 63750, Resistance 2 - 64400.
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