Gold likely to remain range-bound in near-term, needs correction for upmove; go long at 53,500 By Bhavik Patel In last three months, gold was up by around 8% in COMEX and as markets are counting on the Federal Reserve to slow down its rate hike pace as inflation starts to cool but Fed did suggest that terminal rate is still far from current projection. Much awaited correction in both gold and silver happened after Fed chairman’s statement. Although the selloff was very subdued after FOMC statement, follow up selling was evident as the statement carried that inflation will remain persistent for longer than anticipated and interest rates will follow the same course. Powell said that the decision in February would be based on incoming data and financial conditions. But he urged that rates are not high enough yet. Bank of England also raised 50bps rate hike as expected and gold price saw muted movement. BoE expect inflation to moderate in the first quarter of 2023. Traders meanwhile is getting opportunity to book profit as prices were already stretched too far from important moving average and gold needed the pullback if it wanted to run above $1820. Now with major data over and holiday season coming up, we don’t expect any major movement in Gold. However we have seen historically that gold does give big movement in holiday season due to low liquidity. So there might be some chance of gold taking support around $1780 during the holiday season. In MCX, there are chances of more correction as buyers looks exhausted at the top. On weekly chart, there is formation of ‘shooting star’ candlestick formation which is a sign of reversal. On daily chart, we saw ‘Bearish belt hold’ candlestick format which again confirms selling pressure at the top. Gold needs correction if it wants to rally further as the recent move was too fast in too little time. Retail participation were playing catch up and usually they are the last to participate in the rally. We would recommend anyone who is holding long to book profits as gold will trade sideways due to upcoming holiday season. Correction till 53,500 could not be ruled out and we would recommend to take long position around that level with stoploss of 53,000. (Bhavik Patel is a commodity and currency analyst at Tradebull Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
上一篇
下一篇
Also Read: Zerodha’s Nikhil Kamath tells when to buy stocks, shares Buffett formula to find the right time
FII and DII trades: Foreign Institutional Investors (FII) have been net buyers of domestic stocks for successive days now. On Wednesday, FIIs pumped in Rs 2,347 crore. Domestic Institutional Investors (DII) have been net sellers, pulling out Rs 510 crore yesterday.
IPO watch: Syrma SGS Technology enters the final day of bidding today. So far the issue, that opened last week, has been subscribed 2.27 times. Retail investors have subscribed their portion 2.66 times while NIIs have bid for their quota 3.58 times and QIB portion has been bid for 0.71 times.