The price of gold rose on November 25 because the dollar subsided a little. But the comment of the US Federal Reserve policy maker, suggesting a central bank can accelerate tapered stimulus, weigh on the metal and save it well below the $ 1,800 sign.
In multi-commodity exchanges (MCX), gold contracts rose 0.25 percent to Rs 47,556 for 10 grams at 9:35 a.m. on November 25. Silver futures rose 0.43 percent to Rs 62,905 per kilogram.
The Comex Gold traded simply higher near $ 1793 / oz after closing almost flat on November 24. Gold has risen after getting support near the level of $ 1780 / oz. Pause in the US dollar index and bonds have provided support to the metal. FOMC minutes confirmed that Fed officials were worried about inflation and ready for monetary tightening steps. “It was anticipated and, therefore, we did not see many reactions from the US dollar and yields,” said Ravindra Rao, CMT, Lapat, VP – Head Commodity Research, in the Securities box.
In the midst of other factors, Gold ETF investors also moved between the sidelines, waiting for a fresh trigger. However, gold dropped from its lowest position, a difficult sustainable increase with the US dollar was still on a firmer side, he said.
Trade strategy
Abhishek Chauhan, Head of Commodity & Currency, Investmart Swastika
The dollar, which moves opposite to gold, gets good strength, putting pressure on the price of gold and silver. The price of precious metals looks oversold at these levels and rises towards the resistance level expected in today’s session. At MCX, gold has a resistance at Rs 47,800 and supports Rs 47,300.
Ravi Singh, Vice President & Research Head, Sharindia
The price of Comex gold remained calm because strong US economic data lifted the dollar and the treasury results ahead of the minute from the November Federal Reserve meeting which could provide a signal on the increase in interest rates in the future. The government’s proposal reported to climb GST in gold jewelry to 5 percent from 3 percent will also be a setback for the rebound jewelry industry in India. We expect gold prices to remain weak until crossing the level of Rs 47,700 on MCX.
Buy Zones above – Rs 47,700 for RS 48,000 Targets
Selling Zone Below – Rs 47,300 for RS 47,000 Target
Amit Khare, AVP-Commodity Research, Ganganagar Commodity
Yesterday, December gold produced a height of Rs 47,674 and then produced Rs 47,253. Silver produces a height of Rs 63,029 and then produces Rs 62,374. We saw reservations in Bullon since five of the last six trading sessions. Now the current level is the best price for short-term investors. According to the technical chart, the overall structure of gold and silver looks positive, the RSI Momentum indicator also shows the same thing on the graph and trade per hour in the oversold zone. So, short-term investors are advised to make fresh long in small dips near the support level given, traders must focus important technical levels.
Gold Closure Price December 47,438, Support 1 – Rs 47,200, Support 2 – Rs 46,900, Resistance 1 – RS 47,670, Resistance 2 – Rs 48,000.
Silver Closure Price December 62,635, Support 1 – RS 62,200, Support 2 – RS 61,700, Resistance 1 – RS 63,000, Resistance 2 – RS 63.520.