Gold slipped below Rs 48,500 per 10 gm in Indian markets on November 25 as investors shifted focus on risky assets. On the Multi-Commodity Exchange (MCX), December gold contracts were trading lower by 0.26 percent at Rs 48,460 per 10 gram at 0920 hours. December silver was trading 0.25 percent lower at Rs 59,472 per kg.
Experts are of the view that gold could remain volatile but should be able to find support near Rs 48,280 per 10 gm
Gold and silver tumbled on November 24 amid a sell-off in safe-haven assets and strength in the global equities. US President Donald Trump’s move to formally began the transition to the Biden administration reduced risk premium in the gold and silver, experts said.
December gold futures contract settled at $,1804.60 per troy ounce with a loss of nearly 2 percent and December silver futures contract settled on a weaker note at $23.30 per troy ounce.
“Global equities gained and sent gold lower for the third straight day and pushed it below $1,800 per troy ounce. Dow Jones index tests 30,000-mark amid the return of Jennet Yelen and hope of further QE programs to continue in the next year,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“Weakness in the dollar index and downbeat US consumer confidence data supported gold prices at lower levels. We expect both the precious metals remain volatile in today’s session. Gold has support at $1,792-1,780 per troy ounce and resistance at $1814-1822 per troy ounce.”
On MCX, Gold has support at 48,400-48,280 per 10 gram and resistance at 48,800-49,050 levels. “We suggest buying in the gold around 48500 with a strict stop loss of 48280 for the target of 48850 for intraday trading perspective,” Jain said.
International gold and silver prices extended losses on November 24 as the progress on the COVID-19 vaccine and hopes fuelled by White House transition prompted investors to flock to riskier assets.
Domestic gold and silver crashed, tracking overseas prices. The fall in the dollar did not help the bullion markets either.
The dollar fell as risk appetite improved after Trump accepted the transition to Joe Biden and on optimism that a COVID-19 vaccine was close to being rolled out.
Domestic bullion could trade flat on November 25, tracking overseas prices.
MCX December gold continues its bearish momentum where it holds support near 48,400 levels below which it can see a further sharp correction to 48,100-47,800. Resistance is at 48,700-49,000.
MCX December silver started to trade below 60,000, where it’s trading below the lower band of channel formation. A further downside could see 58,300-57,500 levels. Resistance is at 60,300-61,500 .
Ravindra Rao, VP- Head, Commodity Research, Kotak Securities
Comex gold traded mixed near $ 1,800 after a 1.8 percent decline the previous day when it tested its lowest level since July.
Weighing on gold price is reduced safe-haven buying amid vaccine progress and easing political turmoil in the US. ETF outflows also showed weaker investor interest.
Gold may remain under pressure amid improved risk sentiment however, any positive cues from FOMC minutes could limit the downside.
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