Gold slipped below the crucial Rs 50,000 per 10 gm mark in the morning trade in Indian markets on November 24, tracking a muted trend in international spot prices amid optimism over COVID-19 vaccine development and upbeat US economic data.
On the Multi-Commodity Exchange (MCX), December gold contracts were trading lower by 0.81 percent at Rs 49,080 per 10 gram at 0920 hours. December silver futures were trading 1 percent lower at Rs 59,916 per kg.
“COMEX gold has slipped about 0.7 percent and hit a low of $1,823.2/oz, the lowest since July. Gold weakened today after a 1.8 percent decline yesterday. Weighing on the gold price is reduced safe-haven buying amid progress on the vaccine front, upbeat US economic data and signs of transition to the Biden administration in the US,” Ravindra Rao, VP- Head Commodity Research at Kotak Securities told Moneycontrol.
“ETF outflows also show weaker investor interest. Gold was holding in the $1,850-1,900/oz for the last few sessions, however, a break below lower levels and improved risk sentiment has paved way for additional losses.”
Gold and silver tumbled on November 23 amid a rebound in the dollar index, upbeat US flash manufacturing PMI and services PMI data and transition towards the Biden administration.
Gold and silver settled weak at international markets. Gold settled at $1837.80 per troy ounce while silver ended at $23.63 per troy ounce. Both precious metals ended weak in the domestic markets as well.
The dollar index rebounded to the 92.50-mark amid Covid-19 vaccine hopes and the transition of the Trump administration. A risk-on sentiment pushed global equities higher that led to a sell-off in the precious metals pushing it towards a four-month low.
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Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart
Both metals could show further weakness in the coming sessions. Gold could show further weakness towards $1,818-1,800 per troy ounce/Rs 49,220-48,900 and on the upside, major resistance is placed at $1,858/Rs 49,800.
If silver stays below $23.80 per troy ounce /Rs 60,600 levels, then it could show further weakness towards $23.20-22.80 per troy ounce /Rs 60,000-595,00 levels. For silver, $24.00/Rs 61,300 will act as major resistance.
We suggest selling in gold below 49,500 with a strict stop loss of 49,800 for the target of 49,000 and selling in silver below 60,500 with a strict stop loss of 61,200 for the target of 59,500-59,200.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices crashed on November 23 as better-than-expected US business activity data and promising COVID-19 vaccine trials boosted hopes for a swifter economic recovery.
Domestic gold and silver crashed, tracking overseas prices. US business activity in November expanded at its fastest rate in more than five years, boosting optimism about the health of the economy.
Domestic bullion could trade weaker on November 24, tracking overseas prices. Technically, MCX December gold futures did not manage to sustain above 50,200 from where it gave a sharp correction of more than 1.5 percent.
However, it halted its downside move near its support of 49,200. It could see a sharp correction if it slips below 49200 could against 49,000-48,600 levels. Resistance is at 49,700-49,900 levels.
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