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Gold rate today: Traders shrug trade war tensions, pull yellow metal lower

Tue Dec 03 2019


Precious metals ebbed on Tuesday as domestic traders shrugged US President Donald Trump’s announcement to impose tariffs on Brazil and Argentina and moved to riskier assets.


MCXNSE 0.29 % Gold (Feb) futures were down 0.18 per cent to Rs 37,880 while MCX Silver (Mar) futures were down 0.12 per cent to Rs 44,675.


Brokerage SMC Global said bullion counter may trade on a negative path. “Gold (Feb) can dip towards Rs 37,700 while facing resistance near Rs 38,000 and silver (Mar) can test Rs 44,300 while facing resistance near Rs 44,600,” it added.


In the US markets, gold prices edged up on Tuesday, hovering near the one-week high hit in the previous session, after US President Donald Trump's move to slap tariffs on Brazil and Argentina stoked fresh concerns for global trade and hit risk appetite.


Spot gold rose 0.1 per cent to $1,463.42 per ounce by 0134 GMT, reported Reuters. US gold futures were unchanged at $1,469.20.


According to technical charts, spot gold looks neutral in a range of $1,455-$1,466 per ounce, an escape could suggest a direction, said a Reuters analyst.


The range is formed by the 61.8 per cent and 50 per cent projection levels on a downward wave C from $1,515.41. A break above $1,466 could lead to a gain to $1,478, while a break below $1,455 could confirm the continuation of the wave C towards $1,440.


This wave may travel to $1,417, as suggested by a pennant. However, gold's repeated failures to break $1,455 suggest an extension of the bounce from the Nov. 12 low of $1,445.18. Problem is it is hard to estimate how strong the bounce would be.


A very strong bounce may extend into the range of $1,478-$1,492, while a weak one could end around $1,466. Until the metal leaves the current narrow range, signals will be mixed.