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  5. Commodity trade setup Dec 9: Gold and Silver sustain bullish momentum, Silver eyes ₹94,000 mark

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Commodity trade setup Dec 9: Gold and Silver sustain bullish momentum, Silver eyes ₹94,000 mark

Upstox
By Upstox News Desk

4 min read | Updated on December 10, 2024, 08:15 IST

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SUMMARY

Silver prices have risen over 1% on the February futures contract on the MCX, trading near the critical resistance level of ₹94,000 as of 4 PM. Over the past two sessions, silver has formed an inside candle on the daily chart, signaling consolidation at higher levels. Short-term traders should closely watch the high and low of the December 4 candle, as a decisive close above or below these levels could offer key short-term trading signals.

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Commodities trade setup 9 Dec: Gold and Silver sustains bullish momentum, Silver eyes ₹94,000 mark

Market recap (as of 6:45 pm)

  • Gold 5 Dec Futures: ₹77,262/ 10 gram (▲ 0.8%)
  • Silver 5 March Futures: ₹94,483/ 1 kg (▲ 2.2%)
  • Crude Oil 18 Dec Futures: ₹5,793/ 100 BBL (▲ 1.1%)
Gold: The yellow metal traded higher on Monday, with spot gold trading 0.68% higher at $2,678 per ounce. The demand for safe-haven assets rose amid geopolitical turmoil in Syria and South Korea. In Syria, rebel group forces took over Syria’s capital, Damascus and ousted President Bashar al-Assad.
Silver: Silver prices are also trading higher, up 2.66% at $32.42 per ounce in the spot market. The precious metals are on the rise ahead of key economic data to be announced later this week, including US and India inflation numbers for November month.
Crude Oil: Crude prices started the week positively, with Brent Futures trading around $71.95, up 1.15%, while WTI Crude traded 1.35% higher around $68.14. Oil prices traded higher after rising tensions in the Middle East following rebels' overthrow of Syrian President Bashar al-Assad. Oil prices also got support after the world’s largest oil importer, China, plans to ease its monetary policy for the first time since 2010, as per the state media report.

Technical structure

Gold: The technical structure of the spot gold as per the weekly chart remains range-bound between $2,750 and $2,530. It is trading above its 21 weekly exponential moving average and holding the gains of the bullish candle formed during the week ending 22 November. Long-term investors can keep a close eye on the crucial support zone of 21 week EMA as a close above this will indicate weakness. On the other hand, if gold reclaims $2,750 on closing basis, then it may start the journey of fresh all-time high.

Meanwhile, the short-term traders can closely monitor the high and low of the 25 November candle of the February futures contract on the MCX. A close above or below these levels may provide short-term directional clues to the traders.

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Silver: Silver formed the doji candlestick pattern last week on the spot chart, reflecting indecision of investors at the current levels. It traded within the range of 15 November candle and remained range-bound around its 21 weekly EMA. For the upcoming week, investors can monitor the high and the low of 15 November candle. A close above or below this may provide further directional clues. Meanwhile, for the short-term directional clues traders can monitor the resistance level of ₹94,000 and the support of ₹89,200 of the 5 March contract on MCX.
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Crude oil: The crude prices remained under pressure last week and slipped over 1%. The price of the U.S. West Texas Intermmediate (WTI) traded below its 21 weekly EMA for the eighth week in a row, indicating selling pressure for the crude at higher levels. Additionally, it is trading above its crucial support zone of $67 and a close below this will further invite the weakness. However, the sentiment will only change in favour of bulls if the crude sustains above the $73 on closing basis.

The short-term traders can keep an eye on the ₹5,600 zone for directional clues. A break below this level may increase the selling pressure.

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The open interest data for the 16 December expiry remains in favour of bears as the crude oil sustained the call base at 6,000 and 5,900 strikes. Conversely, the put base was seen at 5,700 strike with relatively low volume, suggesting a support for the crude around this zone.

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Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for the client's consumption, and such material should not be redistributed. We do not recommend any particular stock, securities, or strategies for trading. The securities quoted are exemplary and are not recommendatory. The stock names mentioned in this article are purely to show how to do analysis. Take your own decision before investing.

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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