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  5. Commodity trade setup for November 6: Gold and silver tumbles, dollar index jump 2% as Trump wins U.S. presidency

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Commodity trade setup for November 6: Gold and silver tumbles, dollar index jump 2% as Trump wins U.S. presidency

Upstox
By Upstox News Desk

3 min read | Updated on November 06, 2024, 19:32 IST

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SUMMARY

The dollar index jumped around 2% after Donald Trump won the U.S. presidential election, crossing the 270 majority mark. Against this backdrop, the pieces of Gold and Silver tumbled nearly 2%.

Gold and Silver tumbles, Dollar index jumps 2% as Trump wins U.S. presidency

Gold and Silver tumbles, Dollar index jumps 2% as Trump wins U.S. presidency

Market recap (as of 6:45 pm)

  • Gold 5 Dec Futures: ₹76,583/ 10 gram (▼ 2.4%)
  • Silver 5 Dec Futures: ₹90,492/ 1 kg (▼ 4.3%)
  • Crude Oil 19 Nov Futures: ₹5,910/ 1 BBL (▼ 2.3%)
Gold: The yellow metal trades in red, with spot gold trading 0.65% lower at $2,731 per ounce. Spot gold prices made an intraday low of $2710 amid rise in the U.S. dollar after Donald Trump claimed victory in the U.S. presidential elections. The U.S. dollar index surged to 105 today, up 1.7% against baskets of six currencies.
Silver: Silver prices are also trading lower, down 1.23% at $32.37 in the spot market. The precious metals are trading lower ahead of the Federal Reserve's two-day meeting. According to experts, the U.S. Fed is expected to deliver another 25-basis-point rate cut.
Crude oil: Crude prices are trading lower on Wednesday, with Brent Futures dropping to $73.65 intraday and WTI Crude trades around $71.24, both declining over 1%. Oil prices are down amid reports of a higher-than-expected build-up in U.S. crude oil inventories. The data will be announced later in the day. Investors are also cautious as U.S. oil production is expected to face some disruptions in the coming days because of Hurricane Storm Rafael in the Gulf of Mexico.

Technical structure

Gold: The Gold price on MCX dropped below the crucial support of 77,800 and is trading below the VWAP on the hourly chart, indicating weakness. The next crucial support is now placed around the 77,200 zone.
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Silver: The price of the Silver on the MCX slipped below the crucial support of 93,200 and is currently trading below the VWAP on the hourly chart. This indicates that the short-term breadth has become weak, and the next support is around the 91,000 zone.
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Crude oil: The crude prices on the MCX slipped below the VWAP on the hourly chart and are down 0.8%. If they sustain below the VWAP, then the weakness may extend towards ₹5,800 zone. On the flip side, a close above the VWAP will negate the weakness.
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Open interest

The open interest data for the 15 November expiry saw significant call build-up at 6,000 and 6,100 strikes, indicating resistance for crude oil futures in this zone. On the other hand, the put base was seen at 6,000 and 5,800 strikes, pointing at support 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.

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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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