As long as yields continue to rise then the headwinds created from that will continue to pressure gold to lower pricing.Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading flat on Tuesday, even as global cues remained positive. On Multi Commodity Exchange, gold December futures were ruling at Rs 47,324, up Rs 33, against the previous close of Rs 47,291 per 10 gram. Silver December futures were trading over half a per cent or Rs 336 higher at Rs 63,602 per kg. In the previous, silver ended at Rs 63,266 per kg. Globally, gold prices inched up as a decline in the dollar and US bond yields provided some support to the precious metal, according to Reuters. Spot gold rose 0.2 per cent to $1,767.91 per ounce, and US gold futures rose 0.2% to $1,769.6.
Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers
Stagflation talks are back on table after two of the world’s largest economies – US and China posted weaker than expected Industrial production for the month of September, on Monday. US Inflation, which is already at multi year highs, is unlikely to fade anytime soon, as a cold winter might send energy prices even higher. The Fed is probably going to announce tapering in the November meet, but stagflation fears couples with retail demand on account of festive season might underpin the yellow metal in the near-term. Today, MCX Gold December futures might rise towards Rs. 47,500 per 10 gram, amid a weakness in US treasury yields and dollar.
Tapan Patel, Senior Analyst Commodities, HDFC Securities
Gold prices traded firm on Tuesday with spot gold prices at COMEX were trading near $1774 per ounce in the morning trade. Gold prices traded higher supported by weaker dollar and softer US bond yields. The fall in equity indices also boosted buying in gold. The dollar index was trading around 0.22% lower for the day while 10 year US Treasury yields fell to 1.577% in the morning trade. We expect gold prices to trade sideways to up for the day with COMEX Spot support at $1750 and resistance at $1790 per ounce. MCX Gold December support lies at Rs. 47100 and resistance at Rs. 47500 per 10 gram.
Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities
Gold is finding it difficult to go above $1800 because of rising US Treasury yield. Market sentiment continues to be under the assumption that as early as mid-November the Federal Reserve will begin to taper their asset purchases of $120 billion monthly. As long as yields continue to rise then the headwinds created from that will continue to pressure gold to lower pricing. The wildcard that currently could be highly supportive and bullish of gold is a possible sell-off in U.S. equities. Bitcoin is also replacing gold as a speculative or inflation hedge vehicle as it approaches its all time high levels. Although gold prices have managed to hold on to its support of $1750, it has not attracted enough investors to push prices above $1800. We expect gold to trade sideways today in range of 47100-47500. Buy on dips should be the strategy today with stoploss of 47100.
Ravi Singh, VP – Head of Research, Share India Securities
Gold futures traded marginally higher yesterday taking cues from rising demand of gold globally. However, the rising US Treasury yields are continuously putting pressure on Gold prices and capping the upward move. After the sharp profit booking, the outlook of gold is still positive and investors are advised to go long on every correction in gold futures.
Buy Zone Above – 47300 for the target of 47500
Sell Zone Below – 47100 for the target of 46900
NS Ramaswamy, Head of Commodities, Ventura Securities
MCX GOLD DEC prices crossed above key averages on the daily chart. Prices crossed above 50 and 200 Day Moving Average levels. Currently prices are taking support near the 200 day moving average. The RSI indicator suggests prices are consolidating from overbought levels. Gold prices are expected to be less volatile today. Resistance near 47550 acts as an important resistance. Immediate support for prices is near 47100.
Manoj Dalmia, Founder and Director, Proficient Equities
Gold was in primary downtrend until recently but now bears are slowly getting exhausted and it might be entering into a bullish territory, pending confirmation. There is an overhung resistance of 100 day average for gold at 47650 levels and reversal of downtrend will be confirmed only upon closing above this mark. If that happens, one may buy gold for higher prices like 48500 or beyond. November and December are also traditionally bullish for gold from the perspective of seasonality and hence a breakout from current levels looks reasonable.
(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)
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