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.
MCX Gold has been intact in the downward moving channel and is trading in Bollinger bands which suggests a flat trend.
Gold and Silver is likely to show strength on Thursday. Gold can be bought around Rs 38,050, for a target of Rs 38,330 while a stop loss could be placed below Rs 37,920.
On the downside, 38,000-37,950 will act as support and move above 38220 will lead to an upside breakout towards 38,450 levels.
Experts say gold and silver prices will remain volatile and can see selling pressure that can be used as a buying opportunity.
Experts are of the view that Indian Gold is likely to head higher and investors should use any dips to buy for a target of Rs 38,200-38,300 levels in the short term.
Experts are of the view that investors could use buy on dips strategy this week. The next resistance could be seen at 37800-37850.
Experts are of the view that investors could use rallies in Gold to go short. A strong support is placed at 37,500 while resistance is placed at 38050. Investors could initiate long positions on a breakout above 38,050, they say.
Gold prices are likely to remain rangebound and investors should use rallies to sell as weakness could remain for some more time, suggest experts.
In the domestic markets, the level of 38,300 on MCX should hold, and investors should look at buying gold on dips for a target of 38,500, suggest experts
Experts feel that the yellow metal is expected to test Rs 37,800 and Rs 38,100 act as major resistance. Silver is expected to test 45700 and 46200 act as major resistance for silver.
Gold, as an asset class, has been giving more than 6 percent (CAGR) in the last five years. We expect gold will cross Rs 40,000 by next Dhanteras.
On the global front, uncertainty around Brexit will act as a tailwind for the yellow metal
At MCX, prices could test 38,000-38,050 again and 37,680 act as major support for gold. Silver prices could also show some strength today and could test Rs 45,500-45600 levels.
Traders can buy Gold October Futures above 38,400 with 38,100 as stop loss and target towards 38,800 can be expected.
Experts suggest that geopolitical tensions, weakness in rupee and expectations of Fed rate cut will continue to support bullion prices in near future.
In the international market, spot gold was 1.2 percent higher at $1,506.87 per ounce, and on track to mark its biggest one-day percentage gain since Aug. 23
Karvy has recommended to sell MCX Gold at Rs 27170-27180 for the target price of Rs 27000 with a stop loss of Rs 27230, in its research report dated June 04, 2015.
Achiievers has recommended to buy MCX Gold Apr at Rs 25750 for the target price of Rs 26900-27100 with a stop loss of Rs 25550 , in its research report dated March 16, 2015.
Dani Commodities has recommended to buy MCX Gold above Rs 28350 with a stop loss of Rs 28250 for the target price of Rs 28550, in its research report dated August 19, 2014.
Geojit Comtrade has come out with its report on metals and energy. According to the research firm, one can sell MCX Silver March around Rs 43400 levels with a stop loss placed above Rs 44200 for the target of Rs 42200.
Sharekhan has come out with its report on Gold. According to the research firm, the initial target on the upside is the upper channel line, ie Rs 30,280. Once that is crossed the swing‘s high of Rs31,062 will be the subsequent target, says the report.
MOSt Commodities has come out with its report on metals & energy. The research firm continues with its positive bias on MCX Gold and advises to go long on dips in Gold.