Gold Price Today: Yellow metal trades flat in early trade; crucial support placed at Rs 48400, say experts

India Gold MCX February futures traded flat on Monday in the early morning sesion even though international gold was hovering near a three-week high hit in the previous session.

Fears over the rapidly spreading Omicron coronavirus variant boosted the metal's safe-haven appeal. Spot gold was trading near $1,800.42 per ounce, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the February gold contracts were trading flat at Rs 48,578 per 10 grams at 0915 hours. The March Silver futures were trading 0.47 per cent lower at Rs 61,845 a kilogram.

On Friday, gold and silver prices settled on a mixed note in the international markets. Gold February futures contract settled at $1,798.35 per troy ounce, and silver March futures contract settled at $22.37 per troy ounce. Domestic markets were settled on a weaker note.

Gold prices crossed $1800 per troy ounce on Friday but were unable to sustain at higher levels amid strength in the Dollar index. The dollar index which is a measure of value of USD against a basket of currencies crossed 96.55 mark on Friday amid strong fall in the Turkish Lira and rapid spread of omicron in many countries.

“Decline in the U.S. bond yields, Omicron fears and weakness in global equity markets supported safe haven buying in gold and silver. We expect gold and silver prices continue to hold its support levels and any decline in the prices would be buying opportunity at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“Gold has support at $1784-1772, while resistance at $1810-1822 per troy ounce. Silver has support at $22.10-21.84, while resistance is at $22.70-23.00 per troy ounce,” he said.

At MCX, Gold has support at 48400-48220 and resistance at 48800-49050; silver has support at 61900-61500 and resistance at 62660-63100. Jain suggest buying gold around 48400 with a stop loss of 48180 for the target of 48800.

Technical Indicators:

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

COMEX gold trades marginally lower near $1802/oz as support from safe-haven buying is countered by increased expectations of Fed’s monetary tightening. Rising virus cases, setback in US spending bill talks, the stress in China’s property sector has dented risk sentiment increased gold’s safe haven appeal.

However, the US dollar index is still holding on to Friday’s gain amid Fed’s tightening expectations and this has kept pressure on prices.

Gold ETF saw some inflows late last week however the pace was slow. Gold has rallied sharply in last few days but may struggle to build momentum above $1800/oz amid Fed’s monetary policy outlook

(Disclaimer: The views/suggestions/advises 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.)