Gold Rate Today: Gold, silver shine on safe haven demand
Gold can recover towards Rs 37,900 while taking support near Rs 37550 and silver can test Rs 44,400 while taking support near Rs 43,850.
MCX Gold (Dec) futures edged 0.22 per cent higher to Rs 37,802 while MCX Silver (Dec) futures gained 0.55 per cent to Rs 44,130.
Brokerage SMC Global expects bullion counters to witness some short covering at lower levels. Gold can recover towards Rs 37,900 while taking support near Rs 37550 and silver can test Rs 44,400 while taking support near Rs 43,850, it added.
Gold prices were flat on Wednesday as investors stayed cautious after a much-awaited speech by US President Donald Trump gave no details on the signing of a trade deal with China, while a firmer dollar dented demand for the safe-haven asset.
Spot gold was flat at $1,457.91 per ounce, as of 0116 GMT, while US gold futures were up 0.3 per cent at $1,458 per ounce, reported Reuters.
According to technical charts, spot gold may end its current weak bounce around a resistance at $1,466 per ounce and then resume its drop towards $1,440, said a Reuters analyst.
The resistance is identified as the 50 per cent projection level of a downward wave C from $1,515. On the daily chart, gold has broken a support at $1,463, the 23.6 per cent retracement on the uptrend from $1,159.96 to $1,557. It is pulling back towards this former support, now a resistance. The pullback may end around $1,463, which is near $1,466 on the hourly chart.
Based on this retracement analysis, the metal may fall to $1,405.