Gold Prices, Silver Prices
Gold prices neared a five-month high touched in the previous session, after strong US consumer price data prompted a rush into the precious metal seen as a hedge against inflation.
On the Multi-Commodity Exchange (MCX), the gold contracts were down 0.17 percent to Rs 49,132 for 10 grams at 10:16 am. Silver futures were marginally down 0.08 percent to Rs 66,913 a kilogram.
COMEX gold trades marginally lower near $1860/oz after a 0.8 percent gain on November 12. Gold stalled near June highs as support from increased demand as an inflation hedge and choppiness in equity markets is countered by persisting strength in US dollar amid expectations that Fed may act soon. ETFs saw net inflows however the pace is marginal which shows lack of investor interest. Although gold has paused after sharp gains in the last few sessions, the momentum remains positive, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
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Trading Strategy
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver extended its gain after hotter than expected US inflation data. Both the precious metals settled on a positive note in the international markets. Gold December futures contracts were settled at $1863.90 per troy ounce with a gain of 0.84 percent and silver December futures contracts were settled at $25.30 per troy ounce with a gain of 2.14 percent. We expect both the precious metals to remain firm in coming sessions and gold is expected to test $1920 per troy ounce while silver could also test $26.80 per troy ounce in the short term.
Gold has support at $1850-1832 per troy ounce and resistance at $1,878-$1,892 per troy ounce while silver has support at $25.00-24.80 per troy ounce and resistance at $25.55-25.88 per troy ounce. At MCX, gold has support at Rs 49,000-47,770 and resistance at Rs 49440-49700 while silver has support at Rs 66,500-66,100 and resistance at Rs 67,400-68,100 levels. We suggest buying gold on dips around Rs 49000 with a stop loss of Rs 47,770 for target of Rs 49,700 and silver around Rs 66400 with a stop loss of Rs ,for target of Rs 68,000.
Ravi Singh, Vice President & Head of Research at ShareIndia
In the recent FOMC meeting, the tone of Fed was slightly dovish and the US Central Bank signalled to reduce bond purchase by $15 billion per month which is not considered to be aggressive. Gold prices are continuing the bullish trend due to this dovish expectation. We advise investors to keep a buy on dips approach in gold until a clear direction from the Fed.
Buy zone around – Rs 48,900 for target of Rs 49,500
Sell zone below – Rs 48,600 for target of Rs 48,300
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