Around 1:40 am on Monday, the Gold Futures of December were traded on RS 1.15.801 on the MCX, with RS 910 or 0.8%. In the meantime, the yellow metal prices on the Comex floated around $ 3,836 per Troy Ounce, an increase of $ 27 or 0.71%.
Economic uncertainties due to the American tariff policy, geopolitical tensions and the weakness of the dollar against a basket of six large currencies have supported gold prices.
While Gold is consistently becoming new peaks, Jateen Trivedi, Vice President, research analyst at LKP Securities, who praises gold with the problems of the trade rate and the 25 BPS rate rate of the US FED, with further cutbacks on weak payroll data. Worldwide uncertainty, however, continues to support the demand for safe haven, he added.
Continue, Key Focus will be on non-farmers lists and unemployed claims, which will guide the next steps of the FED.
Among the domestic factors, rupees remain under pressure because of the American rates for India, with extra support for MCX gold prizes, the LKP analyst said. Trivedi analyzes Gold’s likely process on the technical charts and recommends the strategy for traders. He proposes 5 technical indicators to pay attention:
1) Key support and resistance
Gold Futures in December rose sharply last week and now keeps 1.15,000 above RS. The most important support lies on RS 1.13,800 – RS 1.14,000, while immediate resistance is seen on RS 1.16.500 and the next RS 1,17,200. Price promotion suggests that buying Momentum remains intact as long as RS means 1.13,800.
2) Momentum indicators
The relative strength index (RSI) is almost 74-75, which indicates an overbought zone, but still holds over 70, which reflects a strong bullish momentum.
3) Bollinger -Bands
The price is broken above the upper Bollinger band, which confirms a strong upward momentum. However, this also suggests the possibility of short -term volatility or mild retracement.
4) Travel averages
The shorter EMA (8) is comfortably above the EMA (21) and confirms the continuation of the bullish trend. Each dip to EMA 8 near RS 1.14,300 – RS 1.14,400 will act as a strong buying option.
5) MacD
MACD line remains above the signal line with positive histogram stations, to support the continuation of the Bullish Momentum in the short term.
Gold Trade Strategy
Trivedi recommends a buy on Dips strategy near RS 1.15,000 with a stop loss on RS 1.13,800 (closing basis) and a target of RS 1.16,500 initially. Persistent trade over RS 1.16,500 can extend the profit to RS 1.17,200.
(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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