MTECHTIPS

MTECHTIPS:-Gold, Rupee indications ask: Is market insanity the new normal?

With rupee rates swinging back and forth, the bullion commodities are also exhibiting volatility to a large extent. While the appreciation in rupee helps gold prices on the upside, the depreciation of the same, or in other words, the strengthening of dollar arrests the upside and drags gold prices down.“Bullion prices have been trading in a very volatile range as rupee depreciation-appreciation cycle continues. It is limiting the downside momentum in our market but also fuelling uptrends.” Technically Silver December contract is having good support at Rs.61000 and resistance at Rs.61800, even as in gold, December contract support is expected at Rs 31330 and resistance at Rs 31500 for an intra-day session.” he added.He has advised intra-day traders to buy MCX Silver December contract above Rs.61800 with stop loss of Rs.61500 for target near Rs.62100 and Rs.62400. For gold, it is advised that traders take a long position around Rs.31390 with stop loss of Rs.31330 for target near Rs.31460 and Rs.31530. Meanwhile, short sellers are advised to take a new short selling position in gold only below Rs.31330 and in silver only below Rs.61000.