Gold opened at USD 738.50/740.50 in New York. The dollar took a beating against most major currencies on weaker US factory orders, which saw gold rally before hitting resistance near USD 748.00, said Ajay Kedia, managing director of Kedia Commodities. The metal traded within a narrow range during much of the morning, however stronger equity markets carried gold through the initial resistance to surge to an intraday high of USD 764.00/766.00. It slipped from the highs as investors took profit, finally settling at USD 756.50/758.50, he further added. MCX Gold December contract declined 0.90% at Rs 11,634 per 10 gm as compared to the previous close of Rs 11,740. It touched a high of Rs 11,719 and low of Rs 11,580. The support for the gold MCX is seen at 11542 and below could see a test of 11343. Resistance is now likely to be seen at Rs 11873, a move above could see prices testing Rs 12005. Silver futures rose on short covering as the dollar weakened and other commodities and equities rose. Liquidation in the dollar, viewed as a safe-haven currency, indicates the market is relieved that election uncertainty is nearly over, Kedia said. MCX Silver futures fell 0.22% at Rs 16,895 per kg as compared to previous close of Rs 16,933. It touched a high of Rs 16,957 and low of Rs 16,933 in today`s session. The support level for the silver is seen at Rs 16601 and below could see a test of Rs 16268. Resistance is now likely to be seen at Rs 17242, a move above could see prices testing Rs 17550. Overall weakness is expected to be seen in gold futures. Hence he recommended selling in gold, below Rs 11,660, with a stop-loss of Rs 11,700 and target of Rs 11,622-11,576-11,530-11,480-11,426. He also suggested selling in silver, below 16880, with a stop-loss of Rs 17023, target price of Rs 16816-16738-16670-16620-16545.

Source