Gold prices on October 29 seemed to be on course to make a third straight weekly gain as a retreat in the US bond yields and a tepid dollar lifted bullion’s safe-haven appeal.
On the Multi-Commodity Exchange (MCX), the gold contracts were down 0.21 percent to Rs 47,861 for 10 grams at 9.30 am. December silver futures were down 0.45 percent at Rs 64,636 a kilogram.
Gold prices jumped by Rs 163 to Rs 48,066 for 10 grams on October 28 on safe-haven appeal amid a selloff in the equity market, firm global cues despite strength in the rupee. The yellow metal retested the $1,800/oz level as tensions between the US and China escalated, consumer demand firmed up and ECB policy meet fuelled speculation.
European Central Bank (ECB) President Christine Lagarde said inflation is expected to rise further and added that it would ease in course of 2022 which ramped up the possibility of a bullish momentum to continue in precious metals. Strong jobless claims data, however, restricted precious metals to break hurdles.
Gold has a resistance at Rs 48,300. Above this level it may test Rs 48,800 levels. It has a support at Rs 47,600, said Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart.
Trading Strategy
Manoj Kumar Jain of Prithvifinmart Commodity Research
Gold and silver price gains were caped after decline in the US unemployment claims. Despite weakness in the dollar index, both the precious metals were settled on a mixed note. The gold December futures contracts were settled at $1802.60 per troy ounce with a gain of 0.21 percent, while silver December futures contracts were settled at $24.12 per troy ounce with a loss of 0.29 percent.
We expect both the precious metals to remain volatile in today’s session and weakness in the dollar index could support prices. Gold has support at $1,788-1,774 per troy ounce and resistance at $1,810-1,824 per troy ounce, while silver has support at $24.00-23.70 per troy ounce and resistance at $24.40-24.66 per troy ounce.
At MCX, gold has support at Rs 47,780-47,650 and resistance at Rs 48,150-48,330, while silver has support at Rs 64,660-64,200 and resistance at Rs 65,300-65,800. We suggest buying gold around Rs 47,800 with a stop loss of Rs 47,600 for the target of Rs 48,180.
Ravi Singh, Vice President & Head of Research at ShareIndia
India’s gold demand has seen a 47 percent on-year jump in the July-September quarter to 139.1 tonnes, riding on sound economic activities and recovering consumer demand, the World Gold Council said in a report. Gold demand in India is bouncing back to the pre-COVID levels and, going forward, the outlook looks bullish, it said.
The advance estimate on Thursday showed that the US third-quarter GDP rose 2 percent versus the market’s expectations of a 2.7 percent increase. The MCX Gold is likely to be range bound this week with a bullish bias.
Buy zone around - Rs 47,850 for the target of Rs 48,150
Sell zone below- Rs 47,700 for the target of Rs 47,500
Amit Khare, AVP- Research Commodities, Ganganagar Commodity
Gold prices were mildly higher on a choppy and two-sided trading day on October 28. Solid losses in the US dollar index are prompting some buying interest in the precious metals markets. Gold and silver showed profit booking on October 28 on the Multi-Commodity Exchange (MCX). December gold contracts closed down by 0.002 percent at Rs 47,961 for 10 grams, while the December silver futures closed at Rs 64,931 a kilogram, down 0.36 percent.
On Thursday, we saw some profit-booking in bullions at higher levels which may continue for the next two-three trading sessions. Momentum indicator RSI is also hints the same on daily chart. So, traders are advised to make fresh short positions in gold and silver on small bounce near given resistance levels, they should focus important technical levels.
December Gold closing price Rs 47,961, Support 1 - Rs 47,650, Support 2 - Rs 47,500, Resistance 1 - Rs 48,100, Resistance 2 - Rs 48,260.
December Silver closing price Rs 64,931, Support 1 - Rs 64,500, Support 2 - Rs 64,000, Resistance 1 - Rs 65,300, Resistance 2 - Rs 66,000.
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