Over the weekend, G20 leaders have urged fast action to deal with the global financial crisis, agreeing “that a broader policy response is needed”. However, economic data remains mostly weak. Eurozone GDP contracted by 0.2% in Q3. The gold price (spot) was choppy on Friday but finished modestly higher, a report from Commonwealth Bank stated.
"Today the market will be sideways. Gold is expected to resist at Rs11,650/10 grams and on the higher side at Rs11,850/10 gram,” Harish Galipelli of Karvy Comtarde said. “In the international market the resistance will be at $725/ounce and on the higher side at $750/ounce," he added.
"I had mentioned that Friday close is very important for gold and silver. Technically gold and silver are in neutral zone with a slightly bullish bias," Chintan Karnani of Insignia Consultants said.
Giving a technical view, Karnani said, Gold December contract on COMEX (New York Mercantile Exchange’s Commodity Exchange) is back to $720/ounce-$770/ounce wider range. This week this range will be surely broken. Gold needs to close below $719/ounce for three consecutive days to be in bearish zone and target $680/ounce while break over $770/ounce will result in $815/ounce in short term.
"Silver needs to hold $9.55/ounce to be in bullish zone with $9.85/ounce and $10.55/ounce as the key intra day resistance. On the lower side as long as $8.80/ounce holds downside will be limited this week," he added.