As the US carried out its fifth airstrike against Houthi targets in Yemen on Thursday, the Iran-backed rebel group quickly launched two anti-ship ballistic missiles at a US-owned chemical tanker, though no injuries or damages were reported.
"Nifty concluded the week at 21,571.80, marking a decline of 323 points from 21,894 levels, on a weekly basis. Pharma, realty, and metal sectors faced selling pressure. Despite persstent attempts to breach crucial resistance, each of them resulted in a sell-off,” Om Mehra, Technical Analyst, at SAMCO Securities said.
Gold has extended decline to 2.62% or Rs 1,659 per 10 grams in 2024. Meanwhile, Silver futures have trimmed this years losses to 3.95% or Rs 2,940 from 4.13% or Rs 3,076 per kg in the last five sessions.
Gold is expected to find good support into the dips on geopolitical concerns emanating from the Middle East as the US and the UK strikes on Houthis have made the region vulnerable. Nonetheless, the yellow metal will be at. a risk to slide lower in case the tensions remain contained, more so as hard macroeconomic data of the US economy remain encouraging.
As traders cut back on their hefty rate-cut wagers, US treasuries may fall further in the near-term, which means gold may be vulnerable in the near term as the metal has been rallying mainly on rate-cut notions. Gold is expected to fall further unless it gets support from the Fed s monetary policy decision to be announced on December 13.