Gold Price Today: Yellow metal trades flat; buy for the target of Rs 47920: Experts

India Gold MCX December futures trades flat on Monday following a muted trend seen in the international spot prices as the dollar strengthened.

The U.S. dollar steadied close to its highest level since Oct. 13 hit on Friday, making gold less appealing to buyers holding other currencies, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.07 per cent higher at Rs 47,670 per 10 grams at 0930 hours. The December silver futures were trading 0.17 per cent lower at Rs 64,427 a kilogram.

On Friday, gold and silver prices settled on a weaker note in the international markets. Gold December futures contract settled at $1,784.85 per troy ounce and Silver December futures contract settled at $23.97 per troy ounce. Domestic markets were also settled on a weaker note.

Gold and silver prices plunged after a strong comeback in the dollar index on Friday. Bond yields and dollar both showed sharp gains after the U.S. inflation data send a signal to the U.S. Federal Reserve to start its tapering sooner than expected, suggest experts.

“We expect both the precious metals to remain volatile this week ahead of the U.S. Federal Reserve meeting outcomes and gold could face steep resistance around $1810 per troy ounce while silver could also face resistance around $24.50 per troy ounce levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“Gold has support at $1772-1758, while resistance at $1800-1810 per troy ounce. Silver has support at $23.70-23.55, while resistance is at $24.20-24.50 per troy ounce,” he said.

At MCX, Gold has support at 47500-47330 and resistance at 47800-48055; silver has support at 64100-63800 and resistance at 64800-65220. Jain suggests buying in gold around 47500 with a stop loss of 47300 for the target of 47920.

Technical Indicators:

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

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

December Gold closing price 47635, Support 1 - 47300, Support 2 - 47100, Resistance 1 - 47950, Resistance 2 - 48260.

December Silver closing price 64534, Support 1 - 64000, Support 2 - 63400, Resistance 1 - 65000, Resistance 2 - 65670.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices fell to their lowest level in more than a week on Friday, weighed down by a stronger dollar after U.S. data showing inflation stayed hot last month put the focus back on the Federal Reserve's policy meeting next week.

The Fed's preferred inflation measure climbed at a 4.4% annual rate in September, continuing a run of inflation at levels not seen in 30 years.

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

Technically, if MCX Gold December trades above 47500 it could witness a bullish momentum up to the resistance zones at 47800-48000 levels. Support zones at 47400-47150 levels.

International silver prices have started with small cuts this Monday morning in Asian trade ahead of Fed and a stronger dollar.

Technically, if LBMA Silver trades above $23.50 levels, it could witness a bullish momentum up to the resistance zones at $24.25-$24.70 levels. Support zones is at $23.10-$22.80 levels.

Domestic silver prices could start with small cuts this Monday morning, tracking overseas prices.

Technically, if MCX Silver December trades above 64500 level it could witness a bullish momentum up to the resistance zones at 65000-65700 levels. Support zones is at 64200-67400 levels.

(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.)