Comments
Gold futures gained strength to trade above ₹48,000 levels after opening higher by ₹176 at ₹47,950 per 10 grams on Friday.
MCX silver December futures opened lower by ₹49 at ₹63,150 per kg.
Gold futures tracked global firm trend and traded higher by ₹248 in the early trades.
Fast Four Bullion
1. Gold steadies
Gold futures settled flat at ₹47,421, the downward trend was contained after the broader sentiment was supported by persistent inflation concerns.
In its commentary on Bullion, Kedia Advisory stated that the market is under long liquidation with drop in open interest by 23.08 per cent. "Now Gold is getting support at ₹47,290 and below same could see a test of ₹47,159 levels, and resistance is now likely to be seen at ₹47,572, a move above could see prices testing ₹47,723," it added.
International gold steadied but US Federal Reserve's hawkish stance limited its advance.
2. Fed keeps bullion on the edge
The US Federal Reserve indicated an accelerated tapering of stimulus and faster monetary tightening to contain inflation. This will keep gold and silver prices under check, as investors would look for alternate asset classes amidst rising Dollar.
CME gold December Futures gained 0.74 per cent on November 25 to trade at $1797 an ounce (oz is equal to approx 28.3 grams), inching closer to a psychological level of $1800.
CME silver December Futures was up 0.38 per cent on November 25 and was last quoted at $23.585 per ounce.
3. Spot gold under pressure
As international prices remained under pressure, spot gold prices in India shows sustained weakness. The India Bullion and Jewellers Association (IBJA) quoted the gold (999 purity) prices at ₹ 47,687 per 10 grams on November 26, marginally up from previous day's closing.
In absence of major demand trigger, spot gold remained weak as investors continued to prefer alternate asset classes amidst global uncertainty on bullion prices.
Spot silver gained to quote above ₹63,000 levels and was last quoted at ₹63,308 a kg on Thursday.
4. Outlook
All eyes remained on the US Fed's decision on early withdrawal of stimulus. Even as global COVID-19 situation remained dynamic with potential economic implications on Europe and China, bullion market remained uncertain.
India gold prices are expected to trade in the range of ₹47,159-47,723, while silver a firm trend in Silver may take it upto ₹63,620.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.