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Gold price today: Yellow metal stable, support seen near Rs 48,400-48,220 levels

Experts are of the view that precious metal is likely to remain volatile, but should find support near 48,400-48,220 levels per 10 gm.

November 26, 2020 / 09:55 AM IST
The bullion metal lost Rs 2,562, or 4.68 percent, for the week on MCX as investors booked profit (Image courtesy: Reuters)

The bullion metal lost Rs 2,562, or 4.68 percent, for the week on MCX as investors booked profit (Image courtesy: Reuters)

India Gold MCX December Futures were trading steady with a positive bias on November 26 while Silver Futures crossed the Rs 60,000-mark.

On the Multi-Commodity Exchange (MCX), December gold contracts were trading higher by 0.17 percent at Rs 48,597 per 10 gram at 0920 hours. December silver was trading 0.4 percent higher at Rs 60,090 per kg.

Experts are of the view that precious metal is likely to remain volatile, but should find support near 48,400-48,220 levels per 10 gm.

Gold and silver find mild support from the weakness in the dollar index, downbeat US unemployment claims data, and Fed minutes.

Both the precious metals were settled on a slightly positive note in the international markets. Gold December futures contracts were settled at $1805.70 per troy ounce and silver December futures contracts were settled at $23.36 per troy ounce.

Close

Due to strength in the rupee, both the precious metals were settled on a mixed note in the domestic markets. Both the precious metals showed volatility on Wednesday and gained during the U.S. trading session after downbeat U.S. unemployment claims, suggest experts.

“Weakness in the dollar index and Fed meeting minutes released on Wednesday also supported prices of gold and silver as U.S. Fed could release the next bond-buying program next month. However, positive vaccine news and ahead of the holiday in the U.S. profit booking is seen during closing hours in the market,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“U.S. markets are closed on Thursday on account of “Thanks giving day” and the market is expected to move in the tight range. Gold is having support at $1792-1784 per troy ounce and resistance at $1814-1822 per troy ounce. Silver is having support at $23.00-22.80 per troy ounce and resistance at $23.55-23.80 per troy ounce,” he said.

Jain further added that at MCX, Gold has support at 48400-48220 and the resistance is placed at 48660-48850 levels. Silver has support at 59300-58800 and resistance is placed at 60300-60800 levels. “We expect range-bound trading in both the precious metals in today’s session,” he said.

Track live gold price here

Trading strategy

Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver fall paused on Wednesday supported by weak labour market data and a weak U.S. Dollar.

Domestic gold and silver ended flat on Wednesday, tracking overseas prices. Reflecting investor sentiments, holdings of the SPDR Gold Trust ETF fell 0.4% to 1,194.78 tonnes on Wednesday from 1,199.74 tonnes on Tuesday.

Domestic bullion could trade with small gains this Thursday morning, tracking the overseas prices. Technically, MCX Gold February holds support near 200-Daily Moving Average near 48250 levels where prices could see some consolidation phase or can see a bounced back activity up to 48700-49100 levels.

However, below 48200 could see a sharp correction up to 47900-47400 levels. MCX Silver March has bounced back from 61000 levels above and could see 62300-63000 levels. Support is at 60300-59200 levels.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities

COMEX gold trades marginally higher near $1810/oz after a near flat close yesterday. Gold seems to have stabilized near $1800/oz as pressure from vaccine progress, easing political chaos in the US, and continuing ETF outflows is countered by rising virus cases, mixed US economic data, and Fed’s willingness to take more measures.

As Gold is seen supported near $1800/oz and we may see some consolidation amid a lack of fresh cues.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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