Gold price prediction today: Will gold continue to rally? Here are the levels investors should watch out for
Gold price prediction today:Gold prices are expected to face upside resistance, and buying on dips may be a favourable strategy, says Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers. He shares his views and recommendations for gold and silver investors:Gold price ended last week almost flat showing consolidated moves while positive developments over US Shutdown reopening over the weekend revived prospects for rate cuts by the US Federal Reserve (Fed) in December shifting focus back to deteriorating US Fiscal outlook. US private jobs data released last week indicated a weak labour market, further supporting the US rate cut prospects. US Challenger job data also indicated a spike in job cuts, suggesting a possible cooling in US labour market conditions. CME Fed funds tool showed rate cut possibility for December 10 -11 meeting have risen to above 90 % now from around 66 % yesterday. Worries about the potential economic fallout from the longest-ever US government shutdown turned out to be a key factor that continued to underpin demand for the safe-haven commodity as the yellow metal rose to three week highs in the current week. Inflation concerns also persisted as President Donald Trump floated the idea of sending American rebate checks of at least $ 2000 a person (excluding high income people) for the tariffs that his administration has collected which provided additional support to yellow metal.In other news, China central bank continued to buy gold for 12th Consecutive month as data showed China’s official gold reserves stood at 74.09 MOz at the end of October up 74.06 Moz from a month earlier, which meant PBoC bought nearly one tonne which continued to boost sentiments in Gold.Meanwhile spot silver rose more than 4 % to above $50 per oz, reaching its highest since October 21. The US, which added copper, and silver to its critical minerals list, also provided structural support for precious and industrial metals. However, the supply shortage which persisted in October has likely eased now indicating an unlikely scenario for new highs in spot, but prices could still find support from uncertain economic conditions in the US which could keep safe haven flows intact in white metal.
Gold Price Outlook
In the near term, gold is expected to test its resistance zone around $ 4190 – 4210 per oz (CMP $ 4135/Oz) while buying on dips could remain a favourable strategy for the metal. Support for the yellow metal could persist in the range of $ 4110 – 4075 per oz in near term. On MCX futures (CMP 124,850/10 gm) prices are expected to witness strong supports in the range of 1,23,800 – 1,22,900 per 10 gm levels in near term as resistance on higher side to remain at around Rs, 1,26,500 – 1,27,900 /10 gm levels for the week. Looking ahead for the week, volatility in prices could also occur at higher levels driven by fluctuations in the dollar index and global financial market as traders could closely monitor the US October Consumer Price Index (CPI) inflation data later on Thursday. The headline CPI is expected to show an increase of 0.2% MoM in October, while the core CPI is projected to show a rise of 0.3% MoM during the same period. The US Retail Sales will be in the spotlight on Friday.Silver could also trade with a positive bias as a rise towards $ 52. 20 – 52.50 per oz (CMP $ 51.10/Oz) in spot cannot be ruled out in near term. Strong support could persist in the range of $ 50.20 – 49.50 /Oz levels. On MCX futures contract (CMP Rs. 1,55,500/Kg.) This could translate to a support level of Rs. 1,52,500–1,50,800 / Kg & resistance at Rs 1,58,000 – 1,59,500/Kg levels for the week.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
