India Gold MCX December futures were trading flat on Monday following muted trend seen in the international spot prices, but investors with a long-term outlook can buy the dip, suggest experts.

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On the Multi-Commodity Exchange (MCX), December gold contracts were trading 0.09 percent higher at Rs 46,549 per 10 grams at 1030 hours. September silver futures were trading 0.21 percent higher at Rs 60,680 a kilogram.

 

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On Friday, gold and silver prices were settled on a positive note in the international markets. Gold December futures contract settled at $1,761.20 per troy ounce, and silver December futures contract settled at $22.56 per troy ounce. Domestic markets settled on a mixed note.

Gold and silver prices rebounded from their lows last week amid profit-taking in the dollar index from higher levels and rising unemployment claims in the United States.

The dollar index slipped from one-year highs and supported both the precious metals. Gold and silver also got support after unemployment claims in the United States rose to 3,62,000, against expected claims of 3,33,000, suggest experts.

“We expect gold prices could test $1788 per troy ounce and silver prices could test $23.20 per troy ounce levels again this week. We suggest a buy on dips strategy in both the precious metals for this week,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“At MCX, Gold has support at 46300-46100 and resistance at 46720-46900; silver has support at 60000-59500 and resistance at 61100-61700 levels,” he said.

Jain suggests buying gold on dips around 46300 with a stop loss of 46050 for the target of 46800, silver can be bought around 60000 with a stop loss of 59220 for the target of 61700, he said.

Technical Indicators:

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

COMEX gold trades marginally higher $1764/oz after a 0.1% gain in the previous session. Gold trades higher supported by a retreat in US dollar index from recent highs, rising inflation concerns on the back of higher energy prices, mixed economic data from major economies, and worries about Chinese economic health.

However, weighing on price is Fed’s monetary tightening expectations, some progress on COVID-19 treatment, upbeat economic data, and continuing ETF outflows. Gold has rescaled $1750/oz however a sustained rise may be difficult if equity markets manage to stabilize.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold and silver prices could trade flat to marginally higher this Monday morning, tracking overseas prices.

Technically, if MCX Gold December trades above 46500 levels, the markets could continue its bullish momentum up to 46700-46900 levels. Support is at 46300-46100 levels.

Technically, if MCX Silver December trades below 60000 levels the markets could continue its bullish momentum up to 61300-62500 levels. Support is at 59700-55900 levels.

Expert: Sandeep Matta, Founder TRADEIT Investment Advisor

Gold on MCX is also trading with renewed positivity and trading at a crucial level of 46500. The market participants will particularly keep an eye on US employment data release for September month before taking a fresh view on the new strategic position in the precious metal.

We anticipate high volatility in the market and advise both investors and traders to follow keep pivotal levels.

Key level for GOLD Dec Contract – 46489

Buy Zone Above – 46500 for the target of 46700-47000

Sell Zone Below – 46475 for the target of 46300-45125

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

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

December Gold closing price 46506, Support 1 - 46200, Support 2 - 45950, Resistance 1 - 46800, Resistance 2 - 47100.

December Silver closing price 60550, Support 1 - 59750, Support 2 - 59000, Resistance 1 - 61325, Resistance 2 - 62100.

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