Gold Buying and Selling Today: As yellow metal price rises, expert reveals trading strategy
Gold today jumped to a two-week high on the back of some slippage in the dollar index. The yellow metal will continue to trade in positive territory in the near to medium term, Amit Sajeja, Assistant Vice President -Research, Commodity and Currency at Motilal Oswal opined. He remained bullish on this bullion metal
Gold today jumped to a two-week high on the back of some slippage in the dollar index. The yellow metal will continue to trade in positive territory in the near to medium term, Amit Sajeja, Assistant Vice President -Research, Commodity and Currency at Motilal Oswal opined. He remained bullish on this bullion metal.
On today's gains, Sajeja said that gold's gains were after some corrections which were due. The outlook for gold remained positive and in between correction present buying opportunities for the buyer.
The correction was imminent and the upside will remove from here, he reiterated. He expected the international spot prices to test USD 1935 which could be a breakout level for further upside till USD 1975. On MCX Gold futures, he expected prices to hit levels around Rs 52,000.
By Diwali, the MCX Gold futures could reach Rs 53,000, he expected.
As for Silver, the metal will move in tandem with gold. He said that he saw more strength in silver that could possibly be because of the strength in base metals. The near term target price is Rs 65,000 and by Diwali it could test levels around Rs 68,000, he said. The international spot prices could get t USD 26.5 per ounce. It has a positional support around USD 23.
Intraday strategy for MCX Gold traders:
At 4:15 pm, the December Gold Futures were trading at Rs 51,378 per 10 gm on the MCX, up by 1.10 per cent. Sajeja said that the immediate support was at Rs 51,200 and the next support is Rs 51,050. Levels around this is a buying opportunity. He puts the target price at Rs 51,750 on the intraday basis.
Intraday strategy for MCX Silver traders:
The MCX December Silver Futures were trading around Rs 62,869 per kg around this time, almost up by 2 per cent in comparison to the Wednesday closing. The AVP said that the upside for silver futures could be limited to Rs 63,700 on the intraday basis while the support will be around Rs 61,100 initially.
Gupta said that the chances for stimulus will now increase and that could be an indicator for the yellow metal's movement. It is a yield non-yielding asset and whenever yields go to zero or negative, internationally, the gold is bound to gain, he further said.
Analysts expect Biden to enact larger stimulus measures than Trump, but chances of a divided Congress could stymie Biden`s fiscal policy, Reuters reported.
"A Democrat in the White House would lead to a weakening of the dollar because of the additional spending and the nature of the mandates that he would set," the report said quoting StoneX analyst Rhona O`Connell.
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"The weaker dollar is not necessarily reflecting the loss of confidence or anything, it`s more a question of what the markets would expect from a Biden presidency," it further said.
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