Gold price increased on Friday owing to safe heaven demand. Analysts expect the yellow metal to remain firm as long as safe haven demand continues.
The gold price (spot) surged higher on Friday, breaching the $800/ounce level. The jump in the gold price appeared to reflect investor diversification into gold as a safe haven asset. Most base metals prices finished with small gains on Friday after a period of choppy trading, the exception being aluminum a report from Commonwealth Bank stated.
This is a shortened trading week with the ‘Thanksgiving’ holidays. It will be once again a technical trade. US October non farm payrolls on Friday (5th December) will be the key to the short term movement on the US dollar. Technically gold and silver are in a bullish zone. If the US dollar declines further then gold and silver will rise, a report from Insignia consultants said.
Giving a technical view, Chintan Karnani of Insignia Consultants said, "Gold December contract on COMEX (New York Mercantile Exchange’s Commodity Exchange) needs to hold $782/ounce-$786/ounce zone to be in bullish zone or break $815/ounce-$822/ounce zone for direction. This week gold is bullish over $769/ounce-$777/ounce zone and only a daily close below this zone will result in a bear zone. Key intra day resistances will be at $812.30/ounce, $823.80/ounce, $839/ounce and $858/ounce. 100 day moving average at $834.20/ounce is the key intra week resistance.
Silver needs to break $9.85/ounce-$10.08/ounce zone for gains to $10.55/ounce and $11.35/ounce and failure to close (daily) over $9.85/ounce will result in a fall back to $8.80/ounce and below, he added.
“In the domestic market gold needs to break Rs13,300/10 grams-Rs13,500/10 grams for gains. If gold does not break Rs13,500/10 grams then it will fall to Rs12,468/10 grams. This week gold is bullish over Rs12600. Silver needs to break and hold Rs16,900/kilo to target Rs17,500/kilo. If silver fails to break Rs16,900/kilo then it will fall to Rs16,100/kilo and Rs15,800/kilo,” Karnani said.
