On December 1, gold prices increased in Indian markets. On Multi Commodity Exchange, February gold contracts rose 0.36% and settled at Rs 48,090 per 10 gram at 0920 hours, while March silver contacts boosted 1.29% and touched Rs 61,000 per kg.
According to experts, gold could see buying dips ahead of U.S. manufacturing data and FED chairman testimony. Significantly, crucial support stands at Rs 47,500, while on the upside, the yellow metal could find resistance close to 48,100 – 48,330.
On November 20, the gold and silver prices extended falls amid positive news on the coronavirus vaccine. The precious metals settled weaker in the international markets. February, the yellow metal futures contract settled at $1,780.90 per troy ounce and March silver futures contract at $22.59 per troy ounce.
Gold and silver ended lower in domestic markets. February gold futures contracts traded are Rs 47,918 per 10 grams while March silver contracts stood at Rs 60,222 per kilogram.
The yellow metal declined by approximately 6% in November, their worst performance in four years. According to experts, increasing optimism over the end of the pandemic continues to direct investors towards riskier assets, casting a shadow over safe-havens like gold.
The vaccine’s news had increased optimism in markets
Head Commodity and Currency Research at Prithvi Finmart, Manoj Jain announced that the vaccine’s news had increased optimism in markets and investors are moving towards riskier assets and unwinding positions from safe-haven dollars, treasuries, and expensive metals. He said that they expect gold and silver to remain volatile in today’s session.
According to Manoj Jain, the yellow metal has support at $1,770 – 1,758 per troy ounce, and resistance is seen at $1,792 – 1,804. On Multi Commodity Exchange, the yellow metal has support at Rs 47,720-47,500 and resistance at Rs 48,100-48,330.
Meanwhile, the white metal has support at Rs 59,600-59,000 and resistance at Rs 60,800-61,300. Jain reported that they expect buying in both the precious metals at lower levels in Tuesday’s session.
Significantly, international spot LBMA gold and silver crashed on November 27 and ended lower on November 30 on increasing optimism over a quick economic rebound.
Meanwhile, domestic gold and silver ended weak on November 27, and extended losses on November 30 in a holiday curtailed trade.
MCX February gold bounced back from the support of Rs 47,500 and will continue some upside momentum over Rs 48,000. Still, it could trade in the Rs 47,700-48,250 range.
MCX March silver held support near Rs levels, where it started to trade over Rs 60,000, showing positive momentum at up to 60,400-61,100 levels. Significantly, support stands at Rs 59,900-59,000.