Gold has a support level of Rs 53,580-53,350 and a resistance level of Rs 53,970-54,180. According to Rahul Kalantri, VP Commodities at Mehta Equities, silver has support at Rs 65,980-65,350 and resistance at Rs 67,100-67,650.
As of 0027 GMT, spot gold was up 0.1 percent to $1,800.02 per ounce. In the previous session, prices reached their highest level since August 10 at $1,804.46. Gold futures in the United States were up 0.2 percent at $1,812.60.
Gold contracts were trading 0.56 percent higher on the Multi-Commodity Exchange (MCX) at Rs 54,150 for 10 grammes at 10:04 a.m. Silver rose 1.2 percent to Rs 67,248 per ounce.
Trading Strategy
Rahul Kalantri, VP Commodities, Mehta Equities
Despite stronger-than-expected US job data indicating more potential interest rate hikes, gold and silver prices remained stable in early Monday trades. While nonfarm payrolls in the United States increased faster than expected in November, markets appeared to be sticking to the Federal Reserve's message that interest rates will rise more slowly in the coming months. The dollar index fell to nearly 6-month lows, while US 10-year bond yields fell to four-month lows.
This week, we expect gold and silver to remain positive. Yellow metal prices may reach $1840 per troy ounce, while silver prices may reach $24.50 per troy ounce. In both precious metals, we recommend a buy on dips strategy. Gold is trading at $1792-1780 per troy ounce, with resistance at $1824-1840. Silver has a support level of $22.90-22.72 per troy ounce, while resistance is at $23.65-23.95 per troy ounce. In rupee terms, gold has a support level of Rs 53,580-53,350 and a resistance level of Rs 53,970-54,180. Silver has a support level of Rs 65,980-65,350 and a resistance level of Rs 67,100-67,650.
Deveya Gaglani, Research Analyst, Axis Securities
Gold prices rose last week, reaching $1790 for the first time in six months. The dollar index correction aided the price of gold. For the first time in six months, the dollar index fell below $105 per dollar. As the Fed chairman indicated, they will take a dovish stance when it comes to raising interest rates as early as December. The gold price is glistening once more, and it has regained its safe-haven appeal. Prices are expected to reach a new high next year. Around the $1820 level, a strong resistance zone is visible. Breakout and sustained buying above the mentioned level may push prices higher in the coming weeks toward the $1860 level. There is a strong support zone.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
The recent week's gold prices extended the winning streak, ending on a higher note. Although the dollar rose as a result of hawkish remarks from US Federal Reserve officials who reaffirmed their commitment to fighting inflation, gold began the week on a shaky note.
After falling to a nearly two-week low, the US dollar began to recover, and a stronger greenback raises the cost of metals for holders of other currencies.
The bullion, on the other hand, surged to two-week highs this week as the US Federal Reserve Chair's speech reiterated predictions of smaller interest rate hikes. The dollar index is set to fall for the week, as a weaker greenback makes dollar-priced gold less expensive for foreign buyers.
We anticipate gold trading higher towards Rs 54140 levels, a break of which could cause the price to rise to Rs 54380 levels.
(credit by moneycontrol.com)
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