Crucial support for gold is placed at Rs 47,500, while on the upside, the yellow metal could find resistance near Rs 48,100-48,330.
Gold prices rose in Indian markets on December 1 on higher international spot prices. On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.36 percent at Rs 48,090 per 10 gram at 0920 hours. March silver was trading 1.29 percent higher at Rs 61,000 per kg.
Experts are of the view that the yellow metal could see buying on dips ahead of US manufacturing data and Fed chairman testimony. Crucial support is placed at Rs 47,500, while on the upside, the yellow metal could find resistance near 48,100-48,330.
On November 30, both metals extended falls amid positive news on the COVID-19 vaccine. Gold and silver settled weaker in the international markets. February gold futures contract settled at $1,780.90 per troy ounce and March silver futures contract at $22.59 per troy ounce.
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Both the precious metals also ended lower in domestic markets. February gold futures contract settled at 47918 per 10 gram while March silver contract was at Rs 60,222 per kilogram.
Gold prices fell around 6 percent in November, their worst performance in four years. Growing optimism over the end of the pandemic continues to direct investors towards riskier assets, casting a shadow over safe havens like bullion, experts say.
“The news of the vaccine has built a lot of optimism in markets and investors are moving towards riskier assets and unwinding positions from safe-haven dollars, treasuries, and bullions. We expect both the precious metals to remain volatile in today’s session ahead of US manufacturing data and the Fed chairman's testimony,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“Gold has support at $1,770-1,758 per troy ounce and resistance is seen at $1,792-1,804. on MCX, gold has support at Rs 47,720-47,500 and resistance at Rs 48,100-48,330,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
Silver has support at Rs 59,600-59,000 and resistance at Rs 60800-61300 levels. "We expect buying in both the precious metals at lower levels in Tuesday’s session,” he said.Trading strategy
Sriram Iyer, Senior Research Analyst at Reliance SecuritiesInternational spot LBMA gold and silver crashed on November 27 and ended lower on November 30 on growing optimism over a quick vaccine-fuelled economic recovery.
Domestic gold and silver ended weak on November 27 and extended losses on November 30 in a holiday curtailed trade, tracking weak overseas prices.
Domestic bullion could trade in a range on December 1. MCX February gold bounced back from the support of Rs 47,500 and will resume some upside momentum above Rs 48,000. However, it could trade in the Rs 47,700-48,250 range.
MCX March silver held support near Rs levels where it bounced back and started to trade above Rs 60,000, indicating positive momentum at up to 60,400-61,100 levels. Support is at Rs 59,900-59,000.
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