Experts are of the view that the strength in Gold should continue given the fact that it closed above 38000 in the previous session. Traders should remain buyers in the precious metal with a target of Rs 38,330-38,350.
India Gold future price fell marginally in morning trade on October 31 after the US Federal Reserve slashed interest rates for the third time this year, but signalled further cuts would be data-dependent which dampened investor sentiment.
The US central bank on Wednesday cut interest rates for the third time this year to help sustain growth in the country despite a slowdown in other parts of the world but signalled there would be no further reductions unless the economy takes a turn for the worse, said a Reuters report.
Gold December futures were trading flat with a negative bias at Rs 38,069 per 10 gram at 0910 hrs IST. It closed 0.45 percent higher at Rs 38,088 on October 30.
Gold and Silver prices gained moderately on Wednesday ahead of the US Federal meeting outcome. Spot Gold settled around $1,496 and Silver settled around $17.88 per troy ounce.
Experts are of the view that the strength in Gold should continue given the fact that it closed above 38,000 in the previous session. Traders should remain buyers in the precious metal with a target of Rs 38,330-38,350.
“The US Fed slashed key interest rate by 25 basis point at 1.50-1.75 percent range. But, after a Fed rate cut, billions are unable to show strength as the fed signal is not clear on the further rate cut,” Manoj Kumar Jain, Director at IndiaNivesh Commodities, told Moneycontrol.
“We expect Gold and Silver prices remain trade in a range $1,506 for Gold and $18 for Silver act as major resistance in the international market. If Gold breaks above 38,220 then the strength will take it towards 38,330-38,480 levels, else it might retest its support level of 37,920 again,” he said.
Jain further added that if Silver prices sustain above 46,200 then it will get further strength which could take Silver towards 46,500-46,600 else will test it's support level of 45,700 again.
Gold Strategy: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities
Gold has been moving in consolidation from the last few days and now a trending move should occur soon.
Based on the technical pattern, on the downside 37,800 will act as crucial support for the Yellow Metal and a move above 38,200 can generate trending move towards 38600 levels.
A further move above 38,600 will indicate that a medium-term upside towards 39,400 has started.
Intraday call: Buy MCX Gold December in the range of 38,100-38,050 with 37,950 as stop loss and target of 38,350-38,400 level.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.