Gold Silver Reports (GSR ) – A weak dollar boosted investors’ appetite for greenback-denominated commodities. Further, US homebuilder sentiment reported its steepest one-month drop in near 5 years in November, which also kept bullion prices elevated.
Gold prices were trading on mixed note in Tuesday’s morning session as a rally supported by a weak dollar was offset by fears that the Federal Reserve may hike rate in its coming meeting.
However, hawkish comments from a Fed member capped the rally in prices. According to NBR reports, a top Fed official on Monday said that despite a series of increases, the key US interest rate remains low and the central bank is likely to raise it further.
Gold prices have been trading in a range with the upper and lower band standing at 31,280 and 30,578, respectively. The bias remains positive for MCX gold as momentum indicator RSI fails to breach the 40-mark on hourly charts indicating continuous buying support from lower levels.
Once 31,125 is taken out on the higher side, we could see gold prices shoot up to the 31,500 mark. However, on the other side, if it breaches 30,578 on the downside, prices may further drift lower towards the 30,220 mark.
