Indian Gold MCX December futures were trading lower on Thursday following muted trend seen in the international spot prices as investors moved to sidelines ahead of a U.S. payrolls report.

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U.S. nonfarm payrolls data, due on Friday, is expected to show an improvement in the labour market, which is an important criterion for the Federal Reserve to start withdrawing pandemic-era support for the economy, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), December gold contracts were trading 0.16 percent lower at Rs 46,834 per 10 grams at 0930 hours. December silver futures were trading 0.04 percent higher at Rs 61,026 a kilogram.

Gold and silver traded in a range in the international markets despite upbeat U.S. non-farm employment data. Both precious metals settled on a mixed note in the international markets.

Gold December futures contract were settled at $1761.80 per troy ounce and silver December futures contract settled at $22.53 per troy ounce. Due to weakness in the rupee, both the precious metals settled on a slightly positive note in the domestic markets.

Gold and silver prices plunged in the early trading session on Wednesday amid strength in the dollar index that hit a fresh one-year high and rising U.S. bond yields, suggest experts.

“The U.S. labour department will release its September month job reports on Friday and expected to be better than expected. Gold and silver prices get some supports at lower levels in the late evening session after profit-taking the dollar index at higher levels and short covering in precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“Gold and silver also catch safe-haven buying amid higher energy prices could lead global inflation in the upcoming months. We expect both the precious metals to remain volatile in today’s session and could hold its support levels,” he said.

Jain suggests buying gold on dips around 46700 with a stop loss of 46500 for the target of 47155 and silver around 60700 with a stop loss of 60330 for that target of 61500.

Technical Indicators:

Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited

Traders are advised to create fresh long positions in Gold and Silver in small dips near given support, traders should focus on important technical levels given below for the day:

December Gold closing price 46907, Support 1 - 46650, Support 2 - 46450, Resistance 1 - 47170, Resistance 2 - 47450.

December Silver closing price 61003, Support 1 - 60500, Support 2 - 60000, Resistance 1 - 61425, Resistance 2 - 62050.

Expert: Sandeep Matta, Founder at TRADEIT Investment Advisor

Market participants are awaiting the U.S. non-farm payroll data which will be released on Friday and are betting positively on the unknown as payroll data will influence and shape the Federal Reserve’s current plan to begin tapering.

Outlook for Thursday is positive, and range-bound consolidation is expected where $1775/oz will be the key level for the precious metal to pass before the fireworks.

Key level for GOLD Dec Contract – 46918

Buy Zone Above – 46925 for the target of 47050-47300

Sell Zone Below – 46900 for the target of 46707-46537

 

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)