Gold prices rose slightly in early U.S. trade Friday, boosted by the fact that a major component of the monthly U.S. jobs data failed to meet market expectations. The metals markets are being supported by a rebound in the crude oil market this morning.
According to Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited, After hitting a three-month low of $64.43 on Tuesday, Nymex crude oil prices rose and traded at $68.00 a barrel yesterday in the major “outside markets.” The OPEC cartel decided on Thursday to increase oil production beginning in January, but it left the door open to alter its mind if global economic conditions change. The dollar index in the United States is marginally higher. In the meanwhile, the yield on the 10-year US Treasury note is at 1.427 percent.
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On the Multi-Commodity Exchange (MCX), February gold futures finished up 1.06 percent at Rs 47,903 for 10 grammes on the 3rd December trading session, showing bullish activity. Silver futures for the March contract finished at Rs 61,516 per kilogramme, up 0.64 percent. Yesterday, February gold hit a low of 47501 before rising to a high of 47930, while silver hit a bottom of 60610 before rising to a high of 61725.
Bullions are now experiencing extreme volatility, which may persist throughout the month of December. According to technical charts, Gold and Silver are both in the oversold zone, with the momentum indicator RSI suggesting the same in both hourly and daily charts. The present levels are the ideal pricing for short-term investors.
Short-term investors are encouraged to open new long positions in tiny drops around specified support levels, while traders should focus on the following crucial technical levels for the day:
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- Support 1 – 47750
- Support 2 – 47500
- Resistance 1 – 48150
- Resistance 2 – 48500
- February Gold closing price 47903.
- Support 1 – 60900
- Support 2 – 60500
- Resistance 1 – 62130
- Resistance 2 – 63000
- March Silver closing price 61516.
According to Dr. Ravi Singh, head of Research and vice president, share India, because the data is insufficient to evaluate the severity and significance of this new variety, gold dealers are keeping a tight eye on any signs of changes in the Omicron version. This week, gold prices are expected to stay in an uptrend, with short covering possible on falls. However, the Fed’s current hawkish posture is preventing Gold from breaking out.
- Buy Zone Above – 48000 for a 48500 target
- Sell Zone Below – 47700 for a 47400 goal
