Gold Price falls on trade deal hopes; buy for a target of Rs 37,900
Experts feel that the yellow metal is likely to remain volatile and investors should use dips to buy for a target of Rs 37,900 levels.
India Gold December futures fell in morning trade on November 27 after US President Donald Trump said an interim trade deal with China is close. “Washington and Beijing are close to an agreement on the first phase of a trade deal, Trump said on Tuesday, after top negotiators from the two countries spoke by telephone and agreed to keep working on remaining issues,” said a Reuters report.
Gold December futures were trading with a loss of 0.18 percent at Rs 37,650 per 10 gram at 0920 hours. Experts feel that the yellow metal is likely to remain volatile and investors should use dips to buy for a target of Rs 37,900 levels.
In the domestic market, Gold after breaching 37,800 tested the lows of 37,520 and Silver after breaching 44400 test the lows of 43900 at MCX.
Expert: Manoj Kumar Jain, Director at IndiaNivesh Commodities
We expect both Gold and Silver to hold onto their key support of 37500 and 43850 in the domestic market. Gold can be bought on dips around 37,600 with a stop loss of 37,480, and a target of 37,850.
Silver can also be bought on dips around 44,200-44,100 range, with a stop loss of 43850, and a target of 44,700.
Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities
MCX Gold December contract managed to protect 37500 levels on Tuesday and then bounced back. This was on the back of recovery witnessed in International Gold prices from $1450 to $1460 levels. This suggests that a move towards $1475 is possible.
MCX Gold has bounced back from the short term channel support, so now as long as 37500 is intact, upside can be possible. We feel that a move towards 37840 is possible.
Intraday strategy: MCX Gold December buy in the range of 37690-37640 with 37540 as stop loss and target of 37900 levels.
Expert: Jateen Trivedi | Sr. Research Analyst – Commodity & Currency
On the daily chart, Gold traded weak on positive trade optimism. But, gained some lost ground on the back of weak US data. The ATR which is significantly low at 350 from 500 in Sep19, keeps indicating signs of less of trending & more of a news based reaction market.
Prices have broken below 20-Days EMA placed at 37985, and 50-Days EMA placed at 37898. The next important support is placed at 100-Days EMA placed at 37535 which was respected on Tuesday as well. The metal is trading in the range of 37500-38400.
Its best to buy when the market is showing intra lows & sell when the market is showing intra highs as the basing range-bound market can continue till the time there are no new confirmed triggers.
Expert: Hareesh V, Head Commodity Research at Geojit Financial Services.
Weak bias may continue as long as prices stay below the firm support of Rs 37780. Intraday supports are seen at Rs 37650 followed by Rs 37560/470 levels. Prices need to break Rs 38300-350 levels to negate the mild bearish outlook.
London spot gold: Likely to extend the weak momentum as long as prices stay below $1469. Next downside level is seen at $1449, consistent trades below the same would trigger major liquidation pressure in the counter. However, an unexpected rise above $1479 would be an early signal of recovery upticks towards $1494 followed by $1510 levels.