Outlook bullish as gold price gains almost 3 pct; See strategy here
The November opening week has been good for Gold and the yellow metal price has gained by almost 3 per cent over the last five trading sessions, Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking said. This precious metal is currently trading at a 7-week high, with a positive outlook from here, the Senior Analyst said
The November opening week has been good for Gold and the yellow metal price has gained by almost 3 per cent over the last five trading sessions, Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking said. This precious metal is currently trading at a 7-week high, with a positive outlook from here, the Senior Analyst said.
The spot prices are on the higher side in comparison to the Gold Futures on account of the festive season with demand now picking up for physical gold, Gupta said.
While, the trends indicate Democratic Party candidate Joe Biden inching towards the Oval office, the expectations around the stimulus package is building now. The quantum of the package is still unknown that ay aid Gold’s cause. The divided Congress could further delay the stimulus.
The situation around Coronavirus continues to be problematic, bringing more uncertainties around the economic recovery he said which will only create fresh traction for gold and silver.
Intraday strategy for MCX Gold traders:
At 3:25 pm, the MCX December Gold Futures were trading at Rs 52,184, up by over 0.2 per cent from the previous close on Thursday. He recommended buying in Gold Futures at Rs 52,000. He puts the stop loss at Rs 51,700 while the target price at Rs 52,500.
Intraday strategy for MCX Silver traders:
The MCX December Silver Futures were trading around Rs 64,872 per kg around this time, almost 1 per cent up in comparison to the Thursday closing. The Senior Analyst said that the investors should look to buy it around Rs 64,500, He puts the stop loss at Rs 63,700 while the target price at Rs 66,000.
The silver spot price in Delhi was Rs 66,000, around this time. The international price of silver was USD 23.30 per ounce.
Internationally, Gold prices fell on the back of a stronger dollar. The prices have appreciated by almost 3.5 per cent on a weekly basis, Reuters reported. US gold futures dropped 0.3 per cent at USD 1,941.30 per ounce. Spot gold fell 0.3 per cent to USD 1,942.25 per ounce by 0731 GMT.
"The US election seems likely to give us a Democrat President and Republican Senate, maintaining the status quo on policy and that has allowed markets to get back to the real issue of 2020 - central bank easing on a huge scale," Jeffrey Halley, senior market analyst at OANDA.
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But prospects of a divided Congress dimmed chances for immediate stimulus, driving expectations the Fed might need to fill the gap, the report said.
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