Gold was trading higher on November 22 in the Indian market as the precious metal recouped some of the declines of the previous session in the international market, with the dollar easing and the focus shifting to the minutes of the US Federal Reserve's latest meeting.
At 10.02 am, gold contracts were trading 0.28 percent higher on the Multi-Commodity Exchange (MCX) at Rs 52,440 for 10 grams. Silver was up 0.94 percent at Rs 61,203 a kilogram.
Spot gold rose 0.3 percent to $1,743.07 an ounce by 0215 GMT. US gold futures, too, were up 0.3 percent at $1,744.50.
Nirpendra Yadav, Senior Research Analyst, Swastika Investmart
The US Fed's meeting minutes will be released on November 23 and will insight into the central bank’s outlook on monetary policy.
The US dollar index gained 0.80 percent in expectation of a hawkish monetary policy in the next meeting. Fed members indicated a slow pace in interest rate hikes but it will remain longer than expected, putting pressure on precious metals prices.
Bullion may trade lower. Gold has resistance at Rs 52,600 and support at Rs 51,700. Silver has resistance at Rs 61,000 and support at Rs 59,500.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver settled on a weaker note in the international market on November 21. December gold futures contract settled at $1,739.60, down 0.71 percent, and the December silver contract settled at $20.87 a troy ounce, down 0.51 percent.
Domestic markets also ended weaker.
We expect gold and silver to remain volatile this week ahead of the FOMC November meeting minutes.
Gold has support at $1,722-1,710 and resistance at $1,750-1,768. Silver has support at $20.55-20.20, while resistance is at $21.24-21.55.
On MCX, gold has support at Rs 52,100-51,920 and resistance at Rs 52,440-52,580. For silver, support is at Rs 60,350-59,800 and resistance at Rs 611,00-61,500.
We suggest selling gold on a rise of around Rs 52,440 with a stop loss of Rs 52,580 for a target of Rs 52,050.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One
Gold prices extend the losing momentum, as the yellow metal slipped 0.68 percent lower and ended at 1,737.8$.
On November 21, as the dollar soared, gold prices decreased nearly a percent as investors opted for the safe haven's rival.
The dollar appreciated, making gold more expensive for holders of other currencies amid fresh COVID-19 curbs in China that fuelled worries over the global economic outlook.
The Federal Reserve is expected to announce a 50-basis point rate hike at its December meeting, so the attention is now turning to the minutes from its recent meeting for guidance on further increases.
As the Fed is anticipated to raise interest rates by 50 bps at its forthcoming meeting, gold prices are anticipated to be under pressure.
(With agency inputs)
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