Gold Rate Today: Gold Trades Higher As Hopes Of US-China Trade Talks Fade

Published date: .

A bleaker hope of breakthrough in the

US-China trade

talks starting Thursday kept

gold

higher on domestic commodity bourses on Wednesday.

Silver

also followed the yellow metal trading in the green.

The United States on Tuesday imposed visa restrictions on Chinese officials for the detention or abuse of Muslim minorities, angering Beijing and casting a shadow over the trade talks. However, a US official said high-level trade talks would still take place on Thursday and Friday as planned.

MCX Gold (Dec) futures were trading 0.2 per cent up at the Rs 38,470 level, while MCX Silver (Dec) futures were up 0.3 per cent, trading above Rs 46,000.

Bullion counter may trade sideways, but profit booking at higher levels can be seen later in the day, SMC Global said. Gold (Dec) can take support near Rs 38,200 while facing resistance near Rs 38,600 and silver can take support near Rs 45,500 and resistance near Rs 46,200.

In the international markets, gold prices held firm on Wednesday as sagging hopes for progress in US-China trade negotiations sapped risk appetite, with markets watching closely for clues on monetary easing by the US Federal Reserve.

Spot gold was little changed at $1,505.46 per ounce as of 0359 GMT, but stood its ground above $1,500 after jumping as much as 1 per cent in the previous session. US gold futures gained 0.5 per cent to $1,511.00 per ounce.

On technical charts, signals are mixed for spot gold as it failed to break a support at $1,488 per ounce, Reuters analyst said.

The support is provided by 23.6 per cent retracement of the uptrend from $1,265.85 to $1,557. It is not very clear if the metal's failure to break $1,488 was due to an extension of the bounce from the October 1 low of $1,458.50.

A break above $1,514 could confirm the extension of the bounce towards $1,537. A break below $1,488 will not only signal the completion of the bounce, but also open the way towards $1,446, which is suggested by a falling channel.

On the daily chart, the drop from the September 4 high of $1,557 seems to be against a medium-term corrective wave cycle from the August 16, 2018 low of $1,159.96. A retracement analysis reveals a target at $1,405, the 38.2 per cent level.

The bounce triggered by the support at $1,463 looks like a pullback towards a rising trendline. The pullback may have completed. Based on these signals on the daily chart, gold is biased to drop towards $1,463.