Gold price in India jumped sharply to nine-month high on Thursday, tracking global cues. On the Multi-Commodity Exchange (MCX), December gold price rose 0.87 per cent to Rs 49,277 for 10 grams at 1545 hours on November 11. Silver price also witnessed a huge jump on Thursday. The precious metal price increased 1.10 per cent to Rs 66,605 on November 11.
In the international market, gold price hit near a five-month high on Thursday. Spot gold rose 0.6 per cent to $1,860.59 per ounce by 0909 GMT. US gold futures gained 0.8 per cent to $1,863.30, according to Reuters. This increase came after data showed US consumer prices in October climbed at their fastest pace in 31 years. The dollar hit an over 15-month high, making gold more expensive for holders of other currencies.
“Domestic gold prices could start with small cuts this Thursday morning, tracking a weak start in overseas prices. Technically, if MCX Gold December trades above Rs 48,770 it could test the resistance zones at Rs 49,367-49,879 levels. Support zones is Rs 48,255-48,000 levels,” said Sriram Iyer, senior research analyst at Reliance Securities
“International silver prices have started marginally weak this Thursday morning in Asian trade. Technically, if COMEX Silver December trades above $24.680 levels, it could witness a upside momentum up to the resistance zones at $25.315-$25.857 levels. Support zones is at $24.135-$23.497 levels. Domestic silver prices could start weak this Thursday morning, tracking weak overseas prices. Technically, if MCX Silver December trades above Rs 65,640 it could test the resistance zones at Rs 67,022-68166 levels. Support zones is at Rs 64,492-63,106 levels,” Iyer added.
“Hot inflation numbers from the US and China fueled buying interest in the precious metals markets today, as traders and investors are seeking out hard-asset hedges against rising prices,” said Amit Khare, AVP- research commodities, Ganganagar Commodity Limited.
“As per technical chart at current prices both metals are looking risky for fresh buying, Momentum indicator RSI also indicating the same on daily chart, So traders are advised to book their longs and should wait for fresh buying in good correction, traders should focus important technical levels given below for the day: December gold closing price Rs 48,854, Support 1 – Rs 48,500, Support 2 – Rs 48,200, Resistance 1 – Rs 49,160, Resistance 2 – Rs 49,500. December Silver closing price Rs 65,878, Support 1 – Rs 65,200, Support 2 – Rs 64,400, Resistance 1 – Rs 66,600, Resistance 2 – Rs 67,270,” Khare added.
“Gold broke July 21 levels and manage to close near $1850 levels as support came from good inflation data which boosted traditional demand of Gold as hedge against inflation also news was floating that a Chinese fund has liquidated their short positions on account of margin calls. Technically RSI is hovering near it’s 3 days EMA on daily charts which suggests consolidation after roller coaster ride while trading below 9 period EMA on intraday charts indicates profit booking at higher levels,” said Vidit Garg, director, MyGoldKart.
“US consumer prices jumped 6.2 per cent on an annual basis in October – the highest since 1990. On account of the data, gold jumped nearly $40 in Comex and touched the level of Rs 49,000 in MCX. Fed Officials already quoted that if inflation keeps rising at its current pace then a more aggressive policy response may be adopted. Taking cue from this, Gold prices have recovered it’s losses and is expected to remain in same trend for few more days. Buy Zone Around – Rs 48,800 for the target of Rs 49,300, Sell Zone Below – Rs 48,600 for the target of Rs 48,300,” said Dr Ravi Singh vice president and head of research ShareIndia.