Gold Price Today: Yellow metal trades flat; buy on dips for a target above Rs 48,000: Experts

India Gold MCX December futures trade lower on Thursday, following muted trend seen in the international spot prices, but it is still trading near 1-month highs as the dollar and longer-dated Treasury yields retreated from recent highs.

Spot gold was little changed at $1,793.72 per ounce. Prices hit their highest level since Sept. 16 at $1,795.81 on Wednesday, said a Reuters report. Making the precious metal cheaper for holders of other currencies, the dollar index fell 0.5% overnight, retreating from a more than one-year high, it said.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.20 per cent lower at Rs 47,822 per 10 grams at 10:00 hours. The December silver futures were trading 0.51 per cent lower at Rs 62,568 a kilogram.

Gold and silver gained on Wednesday after profit-taking in the dollar index and U.S. bond yields. Both the precious metals settled on a positive note in the international markets.

Gold December futures contract settled at $1794.70 per troy ounce, and silver December futures contract settled at $23.17 per troy ounce. Both the precious metals were also settled on a positive note in the domestic markets.

Gold prices jumped to four-week highs after the U.S. inflation report. The focus of the market was on the U.S. consumer price index report for the month of September, which came in at up by 0.4% from August and up by 5.4% year-on-year.

“The U.S. Federal Reserve will closely scrutinize the inflation numbers and higher global energy prices, which fueled inflation before taking its decision on bond tapering earlier this year,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect both the precious metals to remain volatile in today’s session but continue to find support at lower levels. Gold has support at $1780-1766 per troy ounce and resistance at $1804-1822 per troy ounce; silver has support at $23.00-22.70 per troy ounce and resistance at $23.44-23.64 per troy ounce,” he said.

At MCX, Gold has support at 47700-47550 and resistance at 48100-48330; silver is having support at 62500-62220 and resistance at 63100-63600. “We suggest buying in gold on dips around 47700 with a stop loss of 47550 for the target of 48200,” added Jain.

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Technical Indicators:

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

COMEX gold trades marginally lower near $1790/oz after a sharp 2% gain yesterday. Gold has paused after failing to break past the $1800/oz level.

Also weighing on price is relative stability in equities and Fed’s willingness to start bond tapering in coming days.

However, supporting price is inflation concerns and global growth worries. Gold has rallied sharply after consolidation indicating strength however with resistance near $1800/oz fresh buying might be seen at lower levels.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver prices rose on Wednesday. Domestic gold and silver prices also ended with solid gains on Wednesday.

Bullion Index ended in the green on Wednesday, tracking a strong close in domestic gold and silver futures.

Gold and silver prices found support as a pullback in the dollar and U.S. Treasury yields lifted demand for the safe-haven metal.

International silver prices have started flat to marginally weaker this Thursday morning in Asian trade. Technically, LBMA Silver range for the day is $22.75-$23.51.

Domestic silver prices could start flat to marginally weaker this Thursday morning, tracking overseas prices.

Technically, MCX Silver December range for the day is 61400-64000.

Expert: Sandeep Matta, Founder, TRADEIT Investment Advisor

The precious metal posted strong gains due to slightly increase in US inflation data in September. Further Federal Reserve minutes from the September meeting showed central bank officials looking to start reducing their bond-buying stimulus program as soon as mid-November or mid-December, with plans to wrap up in the middle of next year.

We are repeatedly advising market participants to remain long in MCX gold for the past few days and are still positive on the yellow metal.

The outlook is positive for Thursday with some consolidation after this sharp rally and market participants are advised to follow key pivotal levels both sides.

Key level for Gold Dec Contract – 47682
Buy Zone Above – 47700 for the target of 48200-48500
Sell Zone Below – 47650 for the target of 47500-46445

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

Traders are advised to book full profit in long side and wait for fresh buying opportunities at lower levels. They should focus important technical levels given below for the day:

December Gold closing price 47916, Support 1 - 47650, Support 2 - 47400, Resistance 1 - 48160, Resistance 2 - 48400.

December Silver closing price 62887, Support 1 - 62000, Support 2 - 61500, Resistance 1 - 63300, Resistance 2 - 63700.

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.