Experts are of the view that Gold prices are likely to remain volatile and in the short term, traders could go short on the yellow metal with a target of 39,450.
The unsolved trade dispute worries, heightened security issues with Iran coupled with a weak rupee will only act tailwind to gold prices in the Indian market
Experts feel that Gold prices are likely to remain volatile and the upside remains capped around 40,200-40,350
On the MCX, gold contracts for February were trading higher by Rs 562, or 1.38 percent, at Rs 41,225 per 10 gram at 0920 hours. It hit a record high of 42,278 per 10 gm.
Experts see gold touching Rs 45,000 in 2020 and suggest an allocation of 5-15%, depending on the risk appetite.
On the MCX, gold contracts for February were trading lower by Rs 239, or 0.6 percent, at Rs 40,233 per 10 gram at 0920 hours. It hit a record high of 41,096 per 10 gm on Monday.
'Buy on dips' strategy still works in Gold till the time prices are trading above $1532 per Troy ounce in the international market, and 39,330 in the domestic market.
On the MCX, Gold contracts for February were trading higher by Rs 25, or 0.06 percent, at Rs 39,092 per 10 gram at 0910 hours.
MCX Gold is expected to hold 38800 and silver is expected to hold 46100 levels. Any downside correction towards 38880 would be an opportunity to buy gold again.
Experts are of the view that dips if any should be used to buy for a target of Rs 39200-39400 levels while Silver could extend rally towards 47100-47500 levels.
Experts are of the view that Gold prices are likely to stay in momentum till the time trade deal is signed by both the US and China, but some consolidation cannot be ruled out
Experts are of the view that if Gold price sustains above 38330 then the rally could extend towards 38,500 levels while on the downside a break below 38200 could take the metal towards 38,060 levels.
Experts are of the view that as long as Gold Futures hold above 38,050, the yellow metal could head towards 38,200, but a break below this support could trigger some profit-taking.
Gold is likely to trade in a range and a breakout above Rs 38,050 can add to further momentum, while a breach of Rs 37,720 will pile selling pressure.
At MCX Gold prices retested the resistance of 37,920, and most experts expect the Yellow metal is likely to face stiff resistance near 38,050. Traders could use rallies, if any, towards 30,000 to go short, suggest experts.
Experts feel that Gold and Silver prices could show some extreme volatility on Friday, amid the possibility of a trade deal and victory of the ruling party in the UK could put pressure on gold prices.
Experts are of the view that the metal is likely to remain rangebound. Hence, long-term traders can remain long with a target of Rs 37850.
Experts say that investor traders can go short on gold in the range of Rs 37,800-Rs 37,830, with a stop loss of Rs 37,900 and a target of Rs 37,550.
Experts feel that gold may trade in the range, but investors can still look at buying the yellow metal on dips for a target of Rs 38,250.
Experts feel that gold may trade in the range, but investors can still look at buying the yellow metal on dips for a target of Rs 38,250-38,330.
Experts advise investors to use dips to buy for a target of 38,500 on Gold, and 45,600 on Silver.
For December, the price trajectory can be volatile following the uncertainty over the trade deal and the movement of the rupee.
Moderate global demand is the other reason to hit gold prices down. The latest data show that demand from China and India, the largest consumers of gold, sharply declined in recent months.
On a monthly closing basis, Gold closed around 1.25 percent lower in November from previous month in the domestic markets. Prices tested lows of Rs.37,477 during the month before closing at Rs.38,020 per 10 gram.
Experts feel the trend in gold is still intact and investors should use dips to buy for a near-term upside target of Rs 38,700-37,800/10 gm.