Gold Price Today – Dollar weakness, inflation fears lift yellow metal on Monday; see trading strategy for remaining session

The December Gold and Silver Futures were trading with a positive bias on Monday and were dearer by Rs 309 each around 6:40 pm. The domestic markets took cues from the global triggers including weakness in the US Dollar, global inflationary fears, leading to an uptick in metal prices and Russia’s gold and forex reserves going up significantly, analyst Anuj Gupta said.

The holdings of monetary gold increased by 0.14 per cent last month to 73.9 million ounces (2,298.547 tons) as of October 1, Gupta said. The Russian central bank has been steadily diversifying the country’s international holdings, cutting its share of US dollars in favor of gold and other currencies, he said.

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MCX Gold futures were trading at Rs 48,106 per 10 gram around this time and was up 0.65 per cent from the Friday closing price. Meanwhile, the MCX Silver futures were also up 0.47 per cent and were trading at Rs 65,965 per kg.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities recommended a buy on yellow metal at Rs 47,800 with a stop loss of Rs 47,450 and target of Rs 48,500.

As for silver futures, buying is advised at Rs 65,800 with a stop loss of Rs 65,200 and a target of Rs 67,400.

Meanwhile, brokerage firm Motilal Oswal expects Gold and Silver to trade with a positive bias for the remaining session. It places support between Rs 47,800 and Rs 47,500 whereas resistance between Rs 48,300 and Rs 48,500.

Resistance is seen at USD 1790-1778 for the international spot price of gold while resistance is at USD 1810-1820. Gold Futures were last trading at USD 1806.3 at 7:13 pm, up USD 10 or 0.56 per cent.

As for Silver, support is seen at Rs 65,500-Rs 65,000 and resistance is seen at Rs 66,600 and Rs 67,200. The international spot price will have resistance between USD 24.18 and USD 24. The resistance is seen at USD 24.70 and USD 25.10.   

Silver Futures were last trading at USD 24.49 at 7:13 pm, up USD 0.041 or 0.17 per cent.