Gold Price Today: Yellow metal trades flat; buy for a target of Rs 48280: Experts

India Gold MCX December futures trade flat-to-higher on Thursday following positive trend seen in the international spot prices which were supported by a pullback in U.S. bond yields.

Investors looked forward to key central bank meetings for clues on whether they would consider tightening monetary policy earlier than thought, said a Reuters report.

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Benchmark 10-year U.S. Treasury yields steadied close to a two-week trough, decreasing the opportunity cost of holding non-yielding bullion, added the report.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.03 percent higher at Rs 47,978 per 10 grams at 0930 hours. The December silver futures were trading 0.41 percent lower at Rs 64,896 a kilogram.

Gold and silver recovered from their lows on Wednesday after weakness in the dollar and benchmark 10-year bond yields in the United States. Both the precious metals were settled on a positive note in the international markets.

Gold December futures contract settled at $1798.80 per troy ounce, and silver December futures contract settled at $24.19 per troy ounce. Both the precious metals were also settled on a positive note in the domestic markets.

Gold and silver gained on Wednesday after Tuesday’s fall amid weakness in the dollar index U.S. bond yields. The benchmark 10-year bond yields fell below 1.55% and supported precious metal prices.

“We expect both the precious metals to remain volatile ahead of the U.S. GDP data but continue to hold its support levels. Gold is having support at $1784-1772 per troy ounce and resistance at $1808-1822 per troy ounce; silver is having support at $24.00-23.70 per troy ounce and resistance at $24.55-24.84 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

At MCX, Gold has support at 47800-447660 and resistance at 48180-48440; silver has support at 64800-64550 and resistance at 65660-66100.

Jain suggests buying gold around 47800 with a stop loss of 47580 for the target of 48280 and silver around 64800 with a stop loss of 64400 for the target of 66000.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices ended higher in a volatile trading session on Wednesday, supported by a fall in U.S. bond yields and a softer dollar, 

However, a strong risk appetite in equity markets also bullion's gains in check.

Furthermore, investors remained cautious ahead of key central meetings and data points over the next few sessions.

Investors are now awaiting Thursday's European Central Bank (ECB), Bank of Japan (BoJ) and the U.S. FOMC policy meeting on Nov. 3 for more clues on the tapering timeline.

Domestic gold prices could start with small gains this Thursday morning, tracking overseas prices.

Technically, MCX Gold December resistances are at 48114 and 48266. Supports are at 47468 and 47316.

International silver prices have started flat to higher this Thursday morning in Asian trade tracking a subdued U.S. Dollar ahead of data and central bank meetings.

Technically, COMEX Silver December resistances are at $24.379 and $24.567. Supports are at $23.954 and $23.717.

Domestic silver prices could start flat to higher this Thursday morning in Asian trade, tracking overseas prices.

Technically, MCX Silver December resistances are at 65626 and 66087. Supports are at 64616 and 64067.

Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades mixed near $1800/oz after a 0.3% gain yesterday. Gold trades higher supported by a correction in the US dollar index, lower bond yields, and correction in equity markets.

Global growth worries have dented risk sentiment increasing gold’s safe-haven appeal. ETF inflows also show buying interest in gold.

However, weighing on price is expectations of monetary tightening by Fed and other central banks to curb rising price pressure. Gold has rescaled $1800/oz reflecting good buying interest but may remain choppy reflecting volatility in larger financial market and growth concerns while energy crisis is assessed.

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