Market recap (as of 6:15 pm)
- Gold 5 Dec Futures: ₹73,596/ 10 gram (▼ 1.1%)
- Silver 5 Dec Futures: ₹87,332/ 1 kg (▼ 2.0%)
- Crude Oil 19 Nov Futures: ₹5,807/ 1 BBL (▲ 0.2%)
Gold: The yellow metal is trading in the red for the fifth consecutive session, with spot gold down 1.3% at $2,552 an ounce. Gold prices remain under pressure due to a surge in the U.S. dollar and a rise in U.S. Treasury yields, as investors worry that President-elect Donald Trump's policies could fuel inflation and keep interest rates higher for longer. The U.S. Dollar Index rose to a 52-week high of 106.99 today.
Silver: Silver also trades lower, down 2.43% at $29.90 an ounce in the spot market. Precious metals are down as traders are cautious after the benchmark 10-year Treasury yield rose to 4.483%, the highest since July 2024. Meanwhile, the 30-year yield is near a five-month high at 4.6397%.
Crude Oil: Oil prices remain range-bound on Thursday. Brent futures were trading around $72.62, while WTI crude was trading around $68.77. Oil prices have been steady after falling earlier this week amid a strong rebound in the U.S. dollar and concerns of rising supply and slowing demand growth, especially in China, the world's largest oil importer.
Technical structure
Gold: The price of the yellow metal slipped below the crucial support of 74,700, extending the weakness for the fifth day in a row. After today’s fall, the gold has fallen neraly 8% from its recent peak and is now inching closer to the crucial support of 200 EMA. The trend on the daily chart has turned negative in the short-term with gold closing below the recent swing low of 74,750.
Silver: Silver prices also remained weak and slipped towards the psychologically crucial 200 EMA on the daily chart. The broader structure of silver also looks weak as it slipped below the crucial swing low of 88,200 on the daily chart. Traders can monitor the price action of silver around 200 EMA as a close below it would signal further weakness.
Crude oil: The crude prices rebound from the crucial support zone of 5,600 and is currently trading in green. As highlighted in our yesterday’s blog, the broader structure of the crude remains range-bound with weakness. Unless the crude breaks the consolidation zone of 6,200 and 5,600, the trend may remain sideways.
Open interest
The open interest (OI) data for the 15 November expiry broadly remains unchanged as the crude oil has highest call OI 6,000 and 5,800 strikes, suggesting resistance around these levels. Meanwhile, the put base remains at 5,700 and 5,800 strikes, indicating support around these levels.
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.
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