Gold Price Today: Yellow metal trades with marginal gain; buy gold for target of Rs 47,880: Experts

India Gold MCX December futures were trading firm on Wednesday after closing in the negative on Tuesday. Experts say weak domestic futures, strength in the dollar and US bonds led the fall. At around 9.40 am on Wednesday, the precious metal was trading at Rs 47,622 per 10-gram, a gain of Rs 188 (0.4%), after starting the day at Rs 47,569 per 10-gram on the Multi Commodity Exchange of India (MCX).  

The gold in the national capital on Tuesday plunged Rs 810 to Rs 46,896 per 10 gram reflecting an overnight decline in international precious metal prices, said a PTI report citing HDFC Securities.

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"Spot gold prices for 24-carat gold at Delhi plunged Rs 810 reflecting an overnight decline in COMEX gold prices despite the rupee depreciation," it said.
Both the precious metals, gold and silver, settled on a weaker note in the international markets. Gold December futures contract settled at $1,783.80 per troy ounce, a loss of 1.24% and silver December futures contract settled at $23.44 per troy ounce, a loss of 3.56%.  

Both the precious metals were also settled on a weaker note in the domestic markets. Gold December futures contract settled at Rs 47,434 per 10 grams, a loss of 1.02% and silver December futures contract were settled at Rs 62,509 per one kilogram with a loss of 3.19%.

"Gold prices fall in a fourth straight session and tested $1,784 per troy ounce levels in the international markets amid strong gains in the US bonds. Gold prices fell to three weeks lows due to firm trend in the US bonds on expectations of interest rate hikes from the US Federal Reserve sooner than expected after re-appointment of Jerome Powell as Federal Reserve Chairman," said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.

International gold prices fell on Tuesday as the reappointment of US Federal Reserve Chair Jerome Powell raised bets of faster interest rate hikes, said Sriram Iyer, Senior Research Analyst at Reliance Securities.    

"The Dollar Index ended flat, while the benchmark US bond yields rose this Tuesday and continued to take support from news that Jerome Powell has been reappointed for a second term, reinforcing market expectations that US interest rates will rise in 2022. Markets will look to cues from data and testimony from Powell and Treasury Secretary Janet Yellen before the Senate Banking Committee next week," said Iyer.

Technical Indicators:  
 
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities  

Domestic gold and silver ended weaker on Tuesday, tracking weak overseas prices. Bullion Index ended in the red on Tuesday, tracking weak domestic futures.  

International gold prices have started in the green this Wednesday morning in Asian trade ahead of important data tonight.  

Technically, if LBMA Gold sustains below the $1,795 level, it could witness a bearish momentum up to the $1,772-1,760 levels. Resistance is at the $1,795-1,804 levels.  

Domestic gold prices could start with small gains this Wednesday morning, tracking a positive start in overseas prices.  

Technically, if MCX Gold February sustains below 47800 level, it will continue its negative trend up to the 47650-47500 levels. Support is at 47950-48100 levels.  

Domestic silver prices could start small gains this Tuesday morning, tracking firm overseas futures prices.  

Technically, if MCX Silver March sustains below 64000 level, it could witness a bearish momentum up to 63200-62700 levels. Resistance is at 64200-65300 levels.  

Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research

Gold and silver are finding support at lower levels but strength in bond yields pushed prices lower. We expect rising global inflation and fresh travel restrictions in the European Union due to the Covid-19 could support prices at lower levels.  

Prices to remain volatile in today’s session ahead of the U.S. unemployment claims data.  

In the international market, Gold has support at $1768-1755 per troy ounce and resistance at $1800-1812 per troy ounce; silver support stands at $23.10-22.80 per troy ounce and resistance at $23.70-24.00 per troy ounce.  

At mcx, gold is support is seen at 47300-47000 and resistance at 47660-47850. Silver support in the domestic market is at 62100-61660 and resistance at 63000-63600 levels.  

We suggest to buying gold on upside breakout of 47,550 for the target of 47880 with strict stop loss of 47300 on a daily closing basis.

(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.)