Domestic gold prices at Rs. 1,35,590 from a lifetime peak of Rs. 1,300 per 10 grams has come down. February gold futures on the MCX on Friday traded at Rs. It ended flat at 1,34,206, though the bias was positive.
While India’s Multi-Commodity Exchange (MCX) will remain closed on Thursday, December 25, US markets will reopen for trading on Friday, December 26, while markets in the UK, Germany, France, Canada and Hong Kong will remain closed.
Decoding the current trends, Renisha Chainani, Head – Research Augmont, expects the gold price to recover from its high of Rs. 1,35,000 will strengthen and said a breakout or breakdown could trigger a rally of 2%-3% on either side. She sees near-term resistance around the top.
Also Read: Is Gold The Most Reliable Hedge In Market Cycles? A look at 10 different periods
As for silver, traders booked profits at the end of the previous session, which led the March contract to gain 0.21% or Rs. 439 per kg was reduced. White metal contract Rs. 2,08,603 after touching a lifetime high of Rs. 2,08,000 was settled.
“Silver has touched resistance at Rs 2,08,000. Price is expected to see some profit-booking before moving higher. Uptrend remains intact till price trades above Rs 1,94,000 support,” she said, while the next resistance at Rs. 2,18,000 and Rs. 2, 02, 02.
Chainani said geopolitical tensions between the United States and Venezuela, along with strong industrial and investment demand, could provide some support for gold. It also sees a 0.75 bps benchmark rate hike by the Bank of Japan (BoJ) as positive for precious metals.
(disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of the Economic Times.)
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