Gold Price Today: Yellow metal trades flat; buy on dips for a target of 47,100, say experts

India Gold MCX December futures were trading flat on Tuesday following muted trend seen in the international spot prices, which were hovering below $17,700 an ounce amid strength in the US Dollar.

Spot gold fell to $1,761.69 per ounce after hitting $1,770.41 on Monday, its highest since September 23. U.S. gold futures were 0.3% lower at $1,762.30, said a Reuters report.

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"The dollar index rose, making gold more expensive for those holding other currencies, while equity markets slid on concerns about rising inflation," it said.

On the Multi-Commodity Exchange (MCX), December gold contracts were trading 0.20 percent lower at Rs 46,794 per 10 grams at 0930 hours. December silver futures were trading 0.50 percent lower at Rs 60,651 a kilogram.

Gold and silver gained on Monday amid sell-off in the U.S. equities markets. Both the precious metals settled on a positive note in the international markets.

Gold December futures contract settled at $1767.60 per troy ounce, and silver December futures contract settled at $22.64 per troy ounce. Due to weakness in the rupee, domestic markets settled on a positive note.

There is a risk aversion in the global financial markets to start the trading week, suggest experts. Reports suggest that the trading in Chinese property giant Evergrande was halted in Hong Kong on Monday, amid reports also suggest that the troubled firm may be acquired by another firm.

“We expect both the precious metals to remain volatile this week and continue to hold their support levels. Buy on dips strategy continues to work in both precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“At MCX, Gold has support at 46660-46480 and resistance at 47050-47220; silver has support at 60600-60100 and resistance at 61400-61900 levels,” he said. Jain suggests buying gold on dips around 46660 with a stop loss of 46380 for the target of 47100.

Technical Indicators:

Sandeep Matta, Founder at TRADEIT Investment Advisor

The precious metal jumped in Monday’s trade after the OPEC+ mentioned to increase the oil production only gradually ignoring the calls from US and India to boost oil output as the world economy recovers. ‘

Gold on MCX is also getting the price action back in bulls’ side as current world situations such as rising US debt, lower dollar, yields, global equity turmoil are favoring gold.

Key level for GOLD Dec Contract – 46730

Buy Zone Above – 46500 for the target of 46970-47135

Sell Zone Below – 46700 for the target of 46505-46303

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold & silver spot & COMEX futures rose on Monday, tracking weak dollar and easing bond yields.

Domestic gold and silver prices ended higher on Monday, tracking overseas prices.

Bullion Index ended in the green on Monday, tracking firm domestic futures.

The dollar slipped against a basket of currencies on Monday, pulling back from the 1-year high hit last week, as traders looked to U.S. jobs data at the end of the week for clues to the Federal Reserve's next move.

Domestic silver prices could trade weak this Tuesday morning, tracking overseas prices.

Technically, if MCX Silver December trades above 60500 level the markets could continue its upside momentum up to 61300-62500 levels. Support is at 60200-59500 levels.

Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited

Traders are advised to create fresh long positions in Gold and Silver in small dips near given support, traders should focus important technical levels given below for the day:

December Gold closing price 46887, Support 1 - 46500, Support 2 - 46300, Resistance 1 - 47060, Resistance 2 - 47365.

December Silver closing price 60953, Support 1 - 60300, Support 2 - 59700, Resistance 1 - 61560, Resistance 2 - 62500.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)