Gold Price Today: Yellow metal trades flat, crucial support at Rs 45,800; experts reveal key levels for traders - Check buy zones and targets

Gold, silver buying strategy today: India Gold MCX October futures were trading flat on Friday, tracking muted trend seen in the international spot prices amid firm US dollar.

Bullion slipped as much as 2.7% on Thursday, and dropped 1.8% so far this week, Reuters data showed. The dollar held near three-week highs against a basket of major currencies after strong U.S. economic data fueled expectations for earlier policy tightening by the U.S. Federal Reserve, it said.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.02 percent lower at Rs 46,065 for 10 grams at 0930 hours. September silver futures were trading 0.28 percent higher at Rs 61,247 a kilogram.

Gold and silver fell on Thursday after upbeat U.S. economic data and strength in the dollar index. Gold December futures contract settled at $1756.70 per troy ounce with a loss of over 2 percent and silver December futures contract settled at $22.79 per troy ounce with a loss of over 4 percent.

Both the precious metals also settled on a weaker note in the domestic markets as well with a cut of over 1 percent each.

Experts are of the view that the recent economic reports suggest that the economy is in good health and the U.S. monetary policy makers and the U.S. Federal Reserve could consider bond tapering in its next week’s monetary policy meeting sooner than expected.

“The dollar index also reached record highs in anticipation of early tapering from the U.S. Federal Reserve. We expect both the precious metals to remain volatile in today’s session and could show some price retracement from lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“Gold has support at $1745-1720 per troy ounce and resistance at $1772-1784 per troy ounce; silver is having support at $22.55-22.30 per troy ounce and resistance at $23.00-23.40 per troy ounce,” he said.

At mcx, gold has support at Rs 45800-45550 and resistance at Rs 46330-46600; silver is having support at Rs 60500-59900 and resistance at Rs 61800-62400 levels. Jain suggests buying silver around 61000 with a strict stop loss of Rs 60600 for the target of Rs 61800.

Technical Indicators:

Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold spot and futures crashed over 3% on Thursday as strong U.S. retail sales data boosted dollar and raised bets that the Federal Reserve may hasten its tapering.

International silver spot and futures also crashed almost 5% on Thursday tracking the strength of the dollar and weak gold prices.

Domestic gold and silver futures also tumbled on Thursday tracking weak overseas prices. On the domestic side, gold and silver futures on MCX could start flat this early Friday morning trade, tracking overseas prices.

Technically, MCX Gold October below 46100 level could see a Bearish momentum up to Rs 45900-45600 levels. Support is at Rs 46200-46500 levels.

MCX Silver December below Rs 61500 level could see Rs 60000-59200 levels. Resistance is at Rs 61900-63500 levels.

Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited

Positional traders are advised to create fresh buy positions especially in Gold in small dips near Rs 45900-45700, traders should focus important technical levels given below for the day:

October Gold closing price Rs 46076, Support 1 - Rs 45750, Support 2 - Rs 45450, Resistance 1 - Rs 46400, Resistance 2 - Rs 46700.

December Silver closing price Rs 61077, Support 1 - Rs 60200, Support 2 - Rs 69400, Resistance 1 - Rs 62000, Resistance 2 - Rs 62750.

Sandeep Matta, Founder, TRADEIT Investment Advisor

The precious metal had a meltdown in the aftermath of better-than-expected US retail sales data, which is one of the major parts of measuring US economic strength.

A strong retail data could trigger a more hawkish commentary from Fed which further means tapering and higher interest rates just got a little closer.

Gold on MCX also cracked vertically and closed just above Rs 46000 turning all technical indicators in the favor of bears. The safe heaven has fallen into danger zone and could anytime break Rs 45000 if the levels of $1745/oz in US is not respected.

Key level for GOLD – Rs 46268

Buy Zone Above – Rs 46275 for the target of Rs 46400-46550

Sell Zone Below – Rs 46250 for the target of Rs 45800-45600

Manoj Dalmia, Founder and Director, Proficient equities Private limited

We expected the fall of precious metals already from few days as the U.S Federal Reserve meeting is due on 21-22. There are news reports that the U.S central bank will start withdrawing its assets purchases.

We have seen rise in the inflation in the U.S due to delta variant. Precious metal acts as a hedge against a rise in inflation, this is the common phenomenon, but overall trend is weak for now.

Buy zone is Rs 46100 for the target of Rs 46700-46800

Sell zone below Rs 45700 for the target of Rs 45400-45200

(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.)