While the tariff policy of US President Donald Trump has propelled the prizes of the yellow metal, the domestic rates have also been helped by a weaker rupid against the dollar.
Today the Gold -Futures of December on the MCX reached a lifelong height of RS 1.20.075, and 1.6% rose over the Friday closing race of RS 1.18,113. In the meantime, prices on the Comex rose 1.5% or by $ 57.30 to trade around $ 3,966.20.
In commentary on the current trends, Jateen Trivedi, Vice -President – Research analyst – Commodity and Currency, LKP Securities said that the peak in gold prices on twin triggers – trade rates and rupees were weakened.
The tariff stages of US President Donald Trump remain unabated. His recent announcements on H1-B Visa and the pharmaceutical sector are seen as twin magazines, with the actual impact to play. The American administration, via an executive, had increased the annual H-1B Visa application costs from $ 1,000 to $ 100,000 for every new applicant. It also imposed a rate of 100% on patented and brand medicines imported into the US.
The chances of reducing a fed in the midst of weak labor markets has given new impulse to gold, said TriveDi, and emphasized that a rate reduction will be a positive trigger for the non-return gold. Under the local factors, the continuous weakness of INR against the US dollar supports gold prices. Determining the technical graphs, Trivedi shows 5 triggers who can help traders make informed decisions:
1) Key support and resistance
Immediate resistance: the recent high near 1,19,048 (as on the right) acts as an immediate resistance. A break above suggests a strong continuation of the rally.
Multiple support levels are seen on the graphs. The immediate strong support is approximately between RS 1.17,315 and RS 1.16.052.
Important support: the thicker black line (which seems to be a considerably advanced average or earlier resistance is approximately RS 1.16.052. The proposed stop loss of RS 1.17.400 is close to the bottom of the immediate strong support cluster and offers a tight risk management point.
2) Momentum indicator
RSI current lecture is on 64.03. A lecture above 50 and almost 70 suggests that the underlying trend is bullish, but the momentum is strong and is approaching the overbough area (usually ≥70). The RSI has recently been withdrawn from a higher level, which indicates a light cooling of Momentum, which matches the price consolidation. This withdrawal can be considered healthy before there is one step up.
3) Bollinger -Bands
The price rods are currently trading near the upper Bollinger band, which indicates a strong momentum and a position at the higher end of the typical volatility range. The tires seem to grow somewhat, which confirms the recent increase in volatility and upward trend strength.
4) Possibilities – EMA 8 & EMA 21
The faster EMA is above the slower EMA, and both shovels up and the price acts above both EMAs. This configuration is a classically strong bullish signal that confirms the upward trend.
Pullbacks to the yellow (EMA 21) line often serve as buying options in a strong trend.
5) MacD
The MacD shows a bullish crossover and a strong confirmation of the upward trend. The histogram has recently become negative, although it is small, which reflects the recent price consolidation/withdrawal in the short term.
This suggests that the downward pressure in the short term increases, but the overall bullish trend (MacD lines above zero) is still intact.
Gold Trade Strategy
Buy Gold Futures in December near RS 1.18,500 for goals of RS 1.20,000. He places the stop loss at RS 1.17,400.
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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