Gold Price Today: Yellow metal trades flat; buy for a target of Rs 48500: Experts

India Gold MCX December futures trade flat on Tuesday following muted trend seen in the international spot prices which were weighed down by an uptick in the dollar and U.S. bond yields.

Spot gold was trading around $1,803.51 per ounce. The dollar rose on Tuesday, recovering from a near one-month trough while benchmark 10-year U.S. Treasury yields were also a tad higher at 1.6369%, raising non-interest bearing gold’s opportunity cost, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.13 percent lower at Rs 48,137 per 10 grams at 0930 hours. The December silver futures were trading 0.28 percent lower at Rs 65,951 a kilogram.

Gold and silver extended its gain on Monday amid rising global inflation due to higher energy prices. Both the precious metals were settled on a positive note in the international markets.

Gold December futures contract settled at $1806.80 per troy ounce, and silver December futures contract settled at $24.59 per troy ounce. Both the precious metals were also settled on a positive note in the domestic markets.

Gold and silver extended its gain on Monday after the U.S. Federal Reserve Chairman said on Friday that transitory inflation could last a little longer than expected.

Higher global inflation is pushing precious metals prices higher. Gold prices crossed $1800 per troy ounce levels on a closing basis once again.

“Gradual increase in ETF holdings and global central bank gold reserves due to inflation fear has also supported precious metal prices. We expect both the precious metals to remain positive and any decline in the prices would be a buying opportunity at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect gold prices could test $1832 per troy ounce and silver prices could test $25 per troy ounce levels this week. Gold has support at $1796-1784 per troy ounce and resistance at $1818-1832 per troy ounce; silver has support at $24.20-24.00 per troy ounce and resistance at $24.88-25.10 per troy ounce,” he said.

At MCX, Gold has support at 48000-47860 and resistance at 48440-48700; silver is having support at 65700-65220 and resistance at 66660-67200.

“We suggest buying gold on dips around 48050 with a stop loss of 47880 for the target of 48500 and silver around 65800 with a stop loss of 65200 for the target of 67000,” recommends Jain.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices rose on Monday, as a retreat in U.S. bond yields and persisting worries about inflation pushed investors towards the safe-haven appeal of the yellow metal.

Investors also bought gold as a cautious tone set in the markets ahead of major central bank meetings this week.

The markets have a lot going on this week in terms of earnings and data points. 

U.S. benchmark 10-year Treasury yields fell to a session low of 1.6200%, ahead of data and central bank meetings.

Domestic gold prices could start weaker this Tuesday morning, tracking overseas prices. Technically, MCX Gold December resistances are at 48300 and 48500. Supports remain at 47900 and 47750.

International silver prices have started weaker this Tuesday morning in Asian trade tracking the strength of the U.S. Dollar.

Technically, LBMA Silver resistances are at $25.00 and $26.30. Supports remain at $23.40 and $22.70.

Domestic silver prices could start weaker this Tuesday morning, tracking overseas prices.

Technically, MCX Silver December resistances are at 66700 and 67600. Supports are at 65700 and 65000.

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

Traders are advised to book their longs and can make fresh short positions in Gold and Silver in small bounce near given resistance levels, and they should focus on important technical levels given below for the day:

December Gold closing price 48200, Support 1 - 48050, Support 2 - 47900, Resistance 1 - 48300, Resistance 2 - 48450.

December Silver closing price 66139, Support 1 - 65750, Support 2 - 65200, Resistance 1 - 66510, Resistance 2 - 67000.

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

COMEX gold trades marginally lower near $1805/oz after a 0.6% gain yesterday. Gold has rescaled $1800/oz indicating upward momentum and remains supported by inflation concerns, growth worries, and renewed virus concerns.

However, weighing on price is continuing strength in equity markets and weaker investor interest as is evident from ETF outflows.

Gold may continue to witness choppy trade amid mixed factors however general bias may be on the upside amid increasing challenges to the global economy.

(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.)