Gold Prices Today: Gold Futures Trades Higher, Finds Supports At Rs 47,800

Gold Price In India: Gold futures traded marginally higher on Tuesday, November 9, as the yellow metal mirrored trends in global markets. On the Multi Commodity Exchange (MCX), gold futures due for an December 3 delivery, were last seen trading higher by Rs 37 or 0.08 per cent - at Rs 48,055, compared to their previous close of Rs 48,018. Silver futures due for a December 3 delivery were last up 0.02 per cent at Rs 64,892 against a previous close of Rs 64,881.

Domestic spot gold opened at Rs 48,143 per 10 grams on Tuesday, and silver at Rs 64,741 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Gold In International Markets:

Globally, gold prices hovered near a two-month peak on Tuesday, supported by a softer dollar and US bond yields, as investors awaited key inflation data to gauge the Federal Reserve's next move on rate hikes, according to news agency Reuters.

A subdued dollar and lower benchmark 10-year Treasury yields kept the bullion's appeal intact. A weaker dollar reduces bullion's cost for buyers holding other currencies, while lower yields decrease non-interest bearing bullion's opportunity cost.
 

Mr Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:

''COMEX gold trades marginally higher near $1820/oz after a 1.3 per cent gain in previous session. Gold trades higher supported by drop in US bond yields as Fed decided to take a gradual approach on monetary tightening. Also supporting price is inflation concerns.

However, weighing on price is upbeat US jobs report, continuing strength in equity markets and ETF outflows. Gold has rallied sharply in last few sessions amid lack of any aggressive move by Fed but may struggle to build on the gains amid improved risk sentiment.''
 

Trading Strategy:

Dr. Ravi Singh, Vice President & Head of Research, ShareIndia:

''The drop in US bond yields after the dovish approach of Fed on monetary tightening, pulled Gold prices higher. The inflation concerns has increased the safe haven appeal and supporting the prices.

However, the improved US jobs report, strong equity markets and ETF outflows has maintained downward pressure in gold and pushed it to trade in range bound zone. We expect gold to show some upward move this week

Buy Zone Above - 48000 for the target of 48300; Sell Zone Below - 47800 for the target of 47600.''
 

Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited:

''Yesterday December gold made a low of 47815 then made a high of 48174, and silver made a low of 64297 then made a high of 65038. We saw decent buying in bullions at lower levels, which may continue for next few trading sessions.

...traders are advised to make fresh buy positions in gold and silver in small dips, traders should focus important technical levels given below for the day: 

December Gold closing price 48018, Support 1 - 47800, Support 2 - 47600,  Resistance 1 - 48225, Resistance 2 - 48400.''
 

Foreign Exchange Rates:

The dollar was held below recent peaks on Tuesday as traders awaited inflation figures due in the U.S. and China to guide the latest interest rate outlook, while the currency's momentum carried bitcoin and ether to a fresh record high. The rupee opened 73.90 against the US dollar today, against its previous close of 74.02.

Mr Amit Pabari, MD, CR Forex:

''Rising prices and what central banks plan to do about them would remain in the spotlight with inflation data due to be released. In focus will be Wednesday's release of US October CPI, where inflation is expected to hit a more than a decade high of 5.8 per cent in October making it more difficult for the Fed to justify delaying interest rate hikes.

A spiked figure would mean inflation to be more persistent than transitory and rekindle talks of Fed raising interest rates earlier than expected, thereby buckling up for a strong dollar.