Gold prices fell on Monday in the international markets dragged down by a firmer dollar, while investors positioned for key US inflation data and the Federal Reserve’s rate-hike verdict due this week.
Spot gold slipped 0.5% to $1,787.80 per ounce, as of 0302 GMT. US gold futures were down 0.6% at $1,799.60.
At 10.19 am, gold contracts were trading 0.24 percent lower on the Multi Commodity Exchange (MCX) at Rs 54,165 for 10 grams. Silver shed 0.26 percent at Rs 67,860 a kilogram.
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Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
The upward trend in the yellow metal continued, with bullion rising by almost 2%. Given the strength, the prices of gold reached $1800. The dollar index was on track to post a weekly loss and foreign buyers of dollar-priced gold benefited from a weaker dollar. Investors are presently anticipating the US Fed Reserve rates, which are anticipated this week, in order to get an idea of the pace of rate hikes.
The US trade gap notably widened as a result of lower global demand and a strong dollar, which caused goods exports to drop to a seven-month low in October. China's exports and imports decreased in November at the fastest rate in at least two and a half years as a result of weak domestic and international demand as well as production disruptions caused by COVID.
We expect gold to trade lower towards Rs 53920 levels, a break of which could prompt the price to move lower to Rs 53770 levels.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices on December 9 settled on a positive note in the international markets. Gold February futures contract settled at $1,809.40 per troy ounce, up by 0.44% and silver March futures contract settled at $23.68 per troy ounce, up by 1.87%. Domestic markets also settled on a positive note.
We expect gold to hold its support level of $1768 per troy ounce and silver could hold $22.55 per troy ounce levels this week. Gold has support at $1796-1784, while resistance is at $1822-1834 per troy ounce. Silver has support at $23.40-23.10, while resistance is at $24.00-24.40 per troy ounce.
At MCX, gold has support at Rs 54050-53850 and resistance at Rs 54440-54650 while silver has support at Rs 67350-66600 and resistance at Rs 68800-69330. We suggest buying silver on dips around Rs 67600 with a stop loss of Rs 66900 for target of Rs 69100.
(With agency inputs)
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