Gold prices edged up on December 5 in the international markets and hovered near the key $1,800-level, as a softer US dollar made the greenback-priced bullion cheaper for buyers holding other currencies.
Spot gold rose 0.1 percent to $1,800.02 per ounce as of 0027 GMT. Prices hit their highest level since August 10 at $1,804.46 in the previous session. US gold futures were up 0.2 percent at $1,812.60.
At 10:04 am, gold contracts were trading 0.56 percent higher on the Multi-Commodity Exchange (MCX) at Rs 54,150 for 10 grams. Silver jumped 1.2 percent at Rs 67,248 a kilogram.
Trading Strategy
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver prices were steady in early Monday trades despite stronger-than-expected US jobs data indicating more potential interest rate hikes. While US nonfarm payrolls grew more than expected in November, markets appeared to be sticking to the Federal Reserve’s message that interest rates will rise at a slower pace in the coming months. The dollar index fell nearly to 6-month lows and US 10-year bond yields also slipped to four month lows.
We expect gold and silver to remain positive this week. Yellow metal prices could test $1840 and silver $24.50 per troy ounce levels. We suggest a buy on dips strategy in both precious metals. Gold has support at $1792-1780, while resistance at $1824-1840 per troy ounce. Silver has support at $22.90-22.72, while resistance is at $23.65-23.95 per troy ounce. In rupee terms, gold has support at Rs 53,580–53,350, while resistance is at Rs 53,970– 54,180. Silver has support at Rs 65,980- 65,350 while resistance is at Rs 67,100–67,650.
Deveya Gaglani, Research Analyst, Axis Securities
Gold prices rallied last week and settled above $1790 for the first time in six months. The correction in the dollar index supported Bullion price. The dollar index slipped below the $105 level for the first time in six months. As Fed chairman indicated that they will adopt a dovish stance when it comes to hiking the rate as soon as in the month of December itself. Gold price is glittering again and it has regained its safe-haven appeal prices are all set to touch a new high next year. A strong resistance zone is seen around the $1820 level. Breakout and sustained buying above the mentioned level may push prices higher toward the $1860 level in the coming weeks. A strong support zone is seen around the $1760 level.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
Gold prices in the recently concluded week extended the winning streak, as it ended on a higher note. Although the dollar rose as a result of hawkish comments made by US Federal Reserve officials who reaffirmed their commitment to fighting inflation, the bullion started the week on a shaky note.
The US dollar began to rebound after falling to a level that was nearly two weeks low, and a stronger greenback raises the cost of metals for holders of other currencies.
However, the bullion had a surge to two-week highs during the week as the US Federal Reserve Chair's speech reiterated predictions of smaller interest rate hikes. The dollar index headed for a weekly loss, a weaker greenback makes dollar-priced gold less expensive for overseas buyers.
We expect gold to trade higher towards Rs 54140 levels, a break of which could prompt the price to move higher to Rs 54380 levels.
(With agency inputs)
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