Gold & Silver

Gold prices recover from a 7-day slide

Rutam Vora Ahmedabad | Updated on November 28, 2019 Published on November 28, 2019

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Silver hovers around Rs 44,175 amid renewed buying interest

Gold prices on Thursday recovered from a continued slide for past seven days. Spot gold prices are likely to reflect positive momentum seen in futures.

Gold December futures on MCX opened positive on Thursday and gained by more than 100 points or 0.3 per cent to trade at around Rs 37,642 per 10 grams. Spot gold as quoted by India Bullion and Jewellers Association Ltd (IBJA) stood at Rs 37,906 (for 999 purity excluding taxes) on Tuesday. IBJA is yet to release its Thursday's spot gold reference prices.

The yellow metal has seen sustained weakness in prices since November 21, when the spot rates were quoted at Rs 38,454.

International gold futures on CME for December contract also moved positive to trade at $1,455 an oz, up $1.7 over Wednesday's closing.

"Gold is getting support at 37,442 and below same could see a test of 37358 levels, and resistance is now likely to be seen at 37650, a move above could see prices testing 37,774," stated Kedia Commodities in its Gold Spot market report on Thursday.

The currency position turned positive for Rupee, which gained on likelihood of overseas fund inflows due to increasing trend towards riskier assets. The Indian equity markets neared record highs on Thursday opening trades with benchmark indices moving positive including Nifty at 12,119 points, and Sensex at 41,074 points.

Silver prices too reflected the overall positive trend in the bullion segment on renewed buying interest. Silver MCX December futures opened positive at traded higher by 135 points during early trades on Thursday to trade at Rs 44,175 a kg as against a previous close of Rs 44,040.

Commenting on silver price outlook, Dinesh Thakkar, CMD, Tradebulls stated, "Silver is trading in narrow range of 43900-44900 for past 1 week. Recent appreciation in rupee and scant geopolitical concerns amid a booming US stock market has kept Silver prices under pressure."

"Silver needs to breach Rs 45,000 in MCX for an upside momentum. Rs 43600-Rs 43300 is proving to be strong support and more downside may come below these levels. Today, US market is closed on account of Thanksgiving day so expect less volatility today. We may see some pull-back in prices after 3 days of selling. Silver is expected to bounce till Rs 44,350 after which selling may again resume," Thakkar stated.

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Published on November 28, 2019
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