Gold Price Today: Yellow metal trades flat; support seen at 47,700: Experts

India Gold MCX December futures trade around 48,000-mark trading positive trend seen in the international spot prices, which is hovering close to its lowest level in more than two weeks.

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Gold retreated as the dollar gained on US President Joe Biden's nomination of Federal Reserve Chair Jerome Powell for a second term, said a Reuters report. A stronger dollar increases bullion's cost to buyers holding other currencies.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.07 per cent higher at Rs 47,956 per 10 grams at 0930 hours. The December silver futures were trading 0.14 per cent higher at Rs 64,660 a kilogram.

Gold and silver give knee-jerk reaction after the US President nominates Jerome Powell as the US Federal Reserve Chairman for the second term. Both the precious metals were settled on a weaker note in the international markets on Monday.

Gold December futures contract settled at $1806.30 per troy ounce, and silver December futures contract settled at $24.30 per troy ounce. Both the precious metals were also settled on a weaker note in the domestic markets.

Gold prices fell sharply following an announcement by President Biden to nominate Chairman Jerome Powell to continue to be the Federal Reserve Chairman for the next four years.

“A combination of strength in the dollar and bond yields pushed precious metals lower. We expect both the precious metals to remain volatile and could find support at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1796-1782 per troy ounce and resistance at $1818-1832 per troy ounce; silver has support at $24.00-23.84 per troy ounce and resistance at $24.55-24.80 per troy ounce.

“At MCX, Gold has support at 47700-47550 and resistance at 48100-48330; silver has support at 64200-63900 and resistance at 64900-65200,” he said.

Jain suggests buying in gold at 47850 with a stop loss of 47600 on a daily closing basis for the target of 48300.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start with small gains this Tuesday morning, tracking a positive start in overseas prices.

Technically, MCX Gold February could bounced back from 48200 level up to 48350-48500 levels. Support is at 48100-47900 levels.

International silver prices have started with small gains this Tuesday morning in Asian trade; however upside could be capped tracking the strength of the dollar.

Technically, LBMA Silver above $24.00 level could see a bounced back up to $24.45-$25.10 levels. Support is at $23.66-$23.10 levels.

Domestic silver prices could start small gains this Tuesday morning, tracking firm overseas prices.

Technically, MCX Silver March could see a bounce back from 65500 up to 66200-66750 levels. Support is at 65300-64600 levels.

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

Traders are advised to create fresh longs in small dips near given support levels, and should also focus on important technical levels given below for the day:

December Gold closing price 47923, Support 1 - 47650, Support 2 - 47350, Resistance 1 - 48200, Resistance 2 - 48470.

December Silver closing price 64571, Support 1 - 64000, Support 2 - 63600, Resistance 1 - 65020, Resistance 2 - 65500.

(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.)