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Gold futures rise marginally before Fed's rate decision; retail price down Rs 26 to Rs 37,792 per 10 gram

The precious metal prices were further supported by the ambiguity surrounding the US tariffs on Chinese goods coming into effect from December 15 boosted the demand for safe-haven.

December 11, 2019 / 10:31 PM IST

India's Gold futures for February were trading marginally up on December 11 as investors awaited the outcome of the US Federal Reserve and European Central Bank’s policy meeting, and take further cues from its 2020 monetary outlook.

Ambiguity surrounding the US tariffs on Chinese goods coming into effect from December 15 onwards also boosted demand for the safe-haven metal.

US spot gold futures were up $2, or 0.14 percent at $1,464 troy oz at 13:58 GMT.

In the domestic market, gold futures for February rose Rs 54, or 0.14 percent on the MCX trading at Rs 37,625 per 10 gram in evening trade in a business turnover of 16,266 lots. While gold contracts for April delivery gained Rs 31, or 0.08 percent, at Rs 37,689 per 10 gram in a business turnover of 2,390 lots.

The value of the February contracts traded so far is Rs 2,339.79 crore and April contracts saw a value of Rs 73.04 crore.

Gold price is trading under a right-angle broadening wedge pattern, and the price is expected to trade higher. Gold may trade positively once it witnesses the pattern break out of Rs 37,710 as the next leg of rally would push price higher towards Rs 37,950-38,100 levels, according to Axis Securities.

Going forward, Rs 37,530 remains a strong support level in near term with RSI trading at 63 indicates positive momentum in price.

The broking firm advised its clients to buy February gold at Rs 38,000 per 10 gram with a stoploss at Rs 37,750 and a target of Rs 37,950.

MCX gold has support at Rs 37,520-37,300, whereas resistance is at Rs 37,700-37,800. Sideways movement is expected for the day. Price sustainability below immediate support level of Rs 37,520 will give further momentum toward next support level of Rs 37,300, according to Motilal Oswal.

In the retail market, gold was trading down Rs 26 to Rs 37792 per 10 gram in Mumbai's bullion market, while silver was down Rs 15 to Rs 43,260 per kg.

The rate of 10 grams, 22-carat gold in Mumbai was Rs 34,617 plus 3 percent GST, while 10 gram, 24-carat gold was Rs 37,792 plus GST. The price for 18-carat gold quoted at Rs 28,344 plus GST in the retail market.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Moneycontrol News
first published: Dec 11, 2019 09:01 pm

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