Gold Futures Trades Lower As US Dollar, Bond Yields Recover

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Gold Prices Today: Gold Futures Trades Lower As US Dollar, Bond Yields Recover

Gold Rates Today: Domestic spot gold opened at Rs 48,068 per 10 grams on Wednesday

Gold Price In India: Gold futures traded lower on Wednesday, December 29, as the yellow metal mirrored trends in international markets. On the Multi Commodity Exchange (MCX), gold futures due for a February 4 delivery, were last seen trading lower by Rs 298 or 0.62 per cent – at Rs 47,744, compared to their previous close of Rs 48,042. Silver futures due for a March 4 delivery were last down 0.79 per cent at Rs 62,020 against a previous close of Rs 62,514.

 

Domestic spot gold opened at Rs 48,068 per 10 grams on Wednesday, and silver at Rs 62,154 per kilogram – both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Gold in international markets:

Gold prices on Wednesday retreated from a more than one-month peak hit in the last session, as a stronger U.S. dollar and increased appetite for riskier assets depressed sentiment. Spot gold fell 0.3 per cent to $1,800.02 per ounce, while US gold futures dropped 0.6 per cent to $1,800.

Higher rates increase bond yields, making non-yielding bullion less attractive. Gold prices are on track for their biggest yearly decline since 2015, having fallen nearly five per cent so far.

”COMEX gold trades marginally lower but in a range near $1805/oz after a 0.1 per cent gain yesterday. Gold jumped to one-month high yesterday but failed to hold on to the gains as US dollar and bond yields recovered.

There are no fresh triggers in the market and we are seeing choppiness across asset classes reflecting in gold as well. Gold may continue to hover in a range near $1800/oz amid lack of fresh cues however any stability in US dollar may pressurize gold prices,” said Ravindra Rao, CMT, EPAT, VP-Head Commodity Research at Kotak Securities.
 

Trading Strategy:

”Yesterday February Gold made a high of 48328 then made a low of 48002, And Silver made a high of 63239 then made a low of 62344. Movement may be very slow due to year end and new year holiday in US market, As per daily technical chart Gold and Silver both are ready for some profit booking.

Traders are advised to book profit in long side and can create fresh sell positions near given resistance levels, traders should focus important technical levels given below for the day:

February Gold closing price 48042, Support 1 – 47900, Support 2 – 47800,  Resistance 1 – 48225, Resistance 2 – 48400.”

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