India Gold December futures fell in morning trade on November 27 after US President Donald Trump said an interim trade deal with China is close.
“Washington and Beijing are close to an agreement on the first phase of a trade deal, Trump said on Tuesday, after top negotiators from the two countries spoke by telephone and agreed to keep working on remaining issues,” said a Reuters report.
Gold December futures were trading with a loss of 0.18 percent at Rs 37,650 per 10 gram at 0920 hours.
Experts feel that the yellow metal is likely to remain volatile and investors should use dips to buy for a target of Rs 37,900 levels.
Gold Silver prices held on to their crucial support of $1450 and $16.80 per troy ounce in the international market on Tuesday. Prices remained under pressure during the session due to strength in the dollar index, the hope of US-China trade deal and upbeat US goods trade balance and new home sales data.
In the domestic market, Gold after breaching 37,800 tested the lows of 37,520 and Silver after breaching 44400 test the lows of 43900 at MCX.
Prices have broken below 20-Days EMA placed at 37985, and 50-Days EMA placed at 37898. The next important support is placed at 100-Days EMA placed at 37535 which was respected on Tuesday as well. The metal is trading in the range of 37500-38400.
Its best to buy when the market is showing intra lows & sell when the market is showing intra highs as the basing range-bound market can continue till the time there are no new confirmed triggers.
Weak bias may continue as long as prices stay below the firm support of Rs 37780. Intraday supports are seen at Rs 37650 followed by Rs 37560/470 levels. Prices need to break Rs 38300-350 levels to negate the mild bearish outlook.
London spot gold: Likely to extend the weak momentum as long as prices stay below $1469. Next downside level is seen at $1449, consistent trades below the same would trigger major liquidation pressure in the counter. However, an unexpected rise above $1479 would be an early signal of recovery upticks towards $1494 followed by $1510 levels.