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  5. Commodity trade setup for November 25: Gold takes support at 21 EMA, Crude oil sustain positive momentum

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Commodity trade setup for November 25: Gold takes support at 21 EMA, Crude oil sustain positive momentum

Upstox
By Upstox News Desk

3 min read | Updated on November 25, 2024, 18:33 IST

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SUMMARY

Gold prices rebounded from the 76,300 zone, which coincided with the 21 EMA recovering most of its losses. However, the broader structure of gold still remains range-bound, with an immediate hurdle around 79,700.

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Commodities trade setup 25 Nov: Gold takes support at 21 EMA, Crude oil sustains positive momentum

Market recap (as of 6:30 pm)

  • Gold 5 Dec Futures: ₹76,801/ 10 gram (▼ 1.0%)
  • Silver 5 Dec Futures: ₹89,183/ 1 kg (▼ 1.7%)
  • Crude Oil 18 Dec Futures: ₹6,010/ 100 BBL (▼ 0.3%)
Gold: The yellow metal started the week on a lower note, with spot gold down 0.87% at $2,713 an ounce. Gold prices remained weak amid reports of ceasefire talks between Israel and Hezbollah, which pointed to a possible de-escalation in the Middle East, leading to a drop in safe-haven demand. Last week, gold prices rose almost 6% following increased escalation between Russian and Ukraine.
Silver: Silver also trades lower, down 1.46% at $31.31 an ounce in the spot market. Precious metals are trading lower as traders and investors turn cautious ahead of the FOMC meeting minutes, which will be released on Wednesday.
Crude Oil: Crude oil prices edged lower on Monday, with Brent futures trading near $74.46 and WTI crude at $71.03, both down by 0.3%. Experts attribute the decline to market participants adopting a cautious stance as they await key triggers from geopolitical developments and the Federal Reserve's policy outlook.

Technical structure

Gold: The price of yellow metal slipped over 1% on Monday and took support around the 21 exponential moving average (EMA). The broader structure of gold remains range-bound between 79,700 and 73,000. Unless gold breaks this range, the trend may remain range-bound.
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Silver: Silver prices also remained under pressure, slipping closer to the key support zone of 88,200, which coincides with the area of the 200-day EMA. The broader structure for silver remains positive, with immediate resistance at 91,500. Weakness will be seen on a break below the 88,200 zone, the immediate swing low around the 200 EMA.
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Crude oil: After reclaiming the 21 and 50 EMAs on Friday, November 22, crude prices on the MCX 5 December contract are trading within the previous session’s range, forming an inside candle on the daily chart. The broader structure of the index remains range-bound between 6,100 and 5,600, with short-term momentum favouring the bulls.
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The open interest data for the 16 December expiry saw significant put base at 5,700 to 5,900 strikes, indicating support for crude around these strikes. On the other hand, the call base was seen at 6,000 and 6,100 strike, suggesting resistance around these levels.

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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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