Gold prices slipped on November 17 in the international markets, weighed down by a strong dollar after better-than-expected US retail sales data clouded hopes of a smaller rate hike, while safe-haven demand from latest geopolitical concerns also faded.
Spot gold was down 0.4 percent at $1,766.79 per ounce, as of 0252 GMT.
At 09:37 am, gold contracts were trading 0.37 percent lower on the Multi-Commodity Exchange (MCX) at Rs 52,867 for 10 grams and silver shed 0.83 percent at Rs 61,480 a kilogram.
Trading Strategy
Jigar Trivedi, Senior Research Analyst- Commodity & Currency at Reliance Securities
MCX Gold dropped yesterday weighed down by a strong greenback after better-than-expected US retail sales data narrowed hopes of a smaller rate hike, while safe-haven demand from latest geopolitical concerns also faded. San Francisco Fed President Mary Daly told it’s reasonable for the Fed to raise its policy rate to a 4.75%-5.25% range by early next year, and that pausing rate hikes is not part of the discussion. As the speculative geo-political risk premium subsided after Poland’s president said a missile that hit his country was probably a stray Ukrainian defense projectile, dispelling fears that it came from Russia and could widen the Ukraine crisis, the yellow metal dropped further. For intraday today, MCX Gold December may drop to Rs 52,700 per 10 gram.
Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities
With the suspicion that a recent missile attack on a Polish city was orchestrated by Russia, turning out not to be true has helped to avert a major geopolitical flash point, which could have escalated into a major military face-off between Russia and the NATO nations. This has led to the shaving off of some of the safe-heaven premium built into bullion prices. The level of USD 1,780 is a major resistance level for international gold prices. Thus, we have witnessed some profit taking at these levels. Once these levels are taken out , the prices could easily rally toward $1800 and beyond. The stage looks well set for a potential rally in the medium to long run, as plateauing inflation, weaker US dollar and stalling bond yields could act as the catalyst of the next bull run in gold prices. So, we maintain a buy on dips strategy.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices on Wednesday settled on a mixed note in the international markets. Gold December futures contract settled at $1,775.80 per troy ounce, down by 0.06% and silver December futures contract settled at $21.52 per troy ounce, up by 0.02%. Due to weakness in the rupee, domestic markets settled on a positive note.
We expect gold and silver prices to remain volatile and continue to hold their respective support levels. Gold has support at $1762-1750, while resistance at $1788-1800 per troy ounce. Silver has support at $21.33-21.00, while resistance is at $21.84-22.10 per troy ounce.
At MCX, gold has support at Rs 52880-52700 and resistance at Rs 53200-53450 while silver has support at Rs 61400-60900 and resistance at Rs 62550-63200. We suggest buying gold on dips around Rs 52850 with a stop loss of Rs 52680 for target of Rs 53200 and buying silver on dips around Rs 61500 with a stop loss of Rs 60900 for target of Rs 63000.
Nirpendra Yadav, Senior Research Analyst at Swastika Investmart
Gold prices gained over short-term weakness in the US dollar index. US benchmark Treasury yield also slipped below 4% supporting the gold prices. Jitters over layoffs in global giant tech companies indicating recession attracting investors towards bullion. Today's trend in precious metals may remain upside. Gold has resistance at Rs 53500 and support at Rs 52700. Silver has resistance at Rs 63200 and support at Rs 61000.
(With agency inputs)
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