Gold Price Today: Yellow metal trades higher; buy December futures for target of 46,200: Experts

Indian Gold MCX December futures trade flat on Wednesday tracking muted trend seen in the international spot prices which were hovering near 7-week low amid strength in the US Dollar.

Spot gold was flat at $1,735.17 per ounce. On Tuesday prices fell to their lowest level since Aug. 11 to $1,726.19, said a Reuters report. The dollar index hovered near a more than 10-month high, touched on Tuesday.

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On the Multi-Commodity Exchange (MCX), December gold contracts were trading 0.13 percent higher at Rs 46,015 per 10 grams at 0930 hours. December silver futures were trading 0.17 percent higher at Rs 60,568 a kilogram.

Gold and silver plunged on Tuesday amid record gains in the U.S. benchmark 10-year bond yields and the dollar index. Both the precious metals settled on a weaker note in the international markets.

Gold December futures contract settled at $1737.50 per troy ounce, and silver December futures contract were settled at $22.38 per troy ounce. Both the precious metals were also settled on a weaker note in the domestic markets.

Gold and silver prices slipped again on Tuesday after the dollar index reached to 10-month highs and benchmark 10-year bond yields in the U.S. also reached 3-month highs, suggest experts.

“China's crackdown and weakness in the rupee supported gold and silver prices at lower levels. After the Evergrande debt crisis, power crunch in China could halt industrial activities in coming days and could support precious metal prices,” 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 amid very high volatility in the dollar index. At MCX, Gold has support at 45800-45660 and resistance at 46100-46220; silver has support at 60100-59500 and resistance at 60900-61400 levels,” he said.

Jain suggests buying in the December gold futures contract on dips around 45800 with a stop loss of 45660, and a target of 46200.

Technical Indicators:

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

 COMEX gold trades little changed near $1736/oz after a 0.8% decline yesterday when it tested a 7-week low. Weighing on the gold price is firmness in US dollar, increased expectations of Fed’s monetary tightening, and continuing ETF outflows.

However, supporting prices are increasing challenges to the global economy amid rising inflationary pressure, concerns about the health of the Chinese economy and mixed economic data from major economies, and political wrangling over the US debt ceiling limit.

Gold has tested fresh lows indicating weaker sentiment however global risk aversion may keep a floor to prices.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold & silver spot & COMEX futures ended weaker on Tuesday as the dollar strengthened, and U.S. Treasury yields surged on expectations of a sooner-than-expected hike in interest rates by the U.S. Federal Reserve.

Domestic gold and silver prices ended weaker on Tuesday, tracking overseas prices. Bullion Index ended in the red on Tuesday, tracking weak domestic futures.

International silver prices have started flat this Wednesday morning in Asian trade.

Technically, LBMA Silver below $22.50 level could see sideways to marginal downside momentum up to $22.20-$21.50 levels. Resistance is at $22.80-$23.10 levels.

Domestic silver prices could start flat this Wednesday morning, tracking overseas prices.

Technically, MCX Silver December below 60300 level could see 59900-59000 levels. Resistance is at 60800-61200 levels.

Expert: Sandeep Matta, Founder at TRADEIT Investment Advisor

The precious metal along with equity markets tumbled after the comment of U.S. Treasury Secretary Janet Yellen on not raising the debt ceiling in time. Gold registered a double-digit fall breaching the key levels of $1750/oz and seems heading towards $1700/oz in near future.

Gold outlook is not investment-friendly currently however we are reaching in the price zone where physical buying can be initiated for an extended period while setting aside the price action.    

Key level for GOLD AUG Contract – 45871
Buy Zone Above – 45900 for the target of 46150-46285
Sell Zone Below – 45855 for the target of 45725-45500

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

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

October Gold closing price 45853, Support 1 - 45650, Support 2 - 45500, Resistance 1 - 46100, Resistance 2 - 46380.

December Silver closing price 60464, Support 1 - 59800, Support 2 - 59300, Resistance 1 - 61100, Resistance 2 - 61700.

(Disclaimer: The views/suggestions/advices 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.)