India Gold MCX December futures trade higher on Monday tracking positive trend seen in the international spot prices as U.S. bond yields and the dollar softened. 

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Benchmark U.S. 10-year Treasury yields eased after rising to a high of 1.5904% on Monday, reducing non-yielding gold’s opportunity cost, said a Reuters report. 

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.17 percent higher at Rs 47,295 per 10 grams at 0930 hours. The December silver futures were trading 0.31 percent higher at Rs 63,470 a kilogram. 

On Friday, gold and silver prices settled on a weaker note in the international markets. Gold December futures contract settled at $1,768.20 per troy ounce, and silver December futures contract settled at $23.35 per troy ounce. Domestic markets were also settled on a weaker note. 

Gold prices were unable to sustain above $1800 per troy ounce and showed profit-taking after strong U.S. retail sales data. The U.S. retail sales for the month of September rose to 0.7% against a consensus forecast of down by 0.2% from August. 

Rising record base metal and energy prices continue to fuel global inflation in coming months. Global power crunch and supply concerns are riding energy and base metal prices, suggest experts. 

“We expect gold and silver prices could find support at lower levels this week and higher global inflation concerns could support prices. We expect gold could hold $1750 per troy ounce levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said. 

“We suggest a buy on dips strategy in both precious metals. Gold has support at $1750-1734, while resistance at $1784-1800 per troy ounce. At MCX, Gold has support at 47000-46770 and resistance at 47440-47700; silver has support at 62800-62300 and resistance at 63800-64400 levels,” he said. 

Jain suggests buying gold on dips around 47050 with a stop loss of 46800 for the target of 47550 and silver around 62900 with a stop loss of 62300 for the target of 64000. 

Technical Indicators: 

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities 

International gold and silver prices crashed on Friday. 

Domestic gold and silver prices also ended with solid losses on Friday. 

Bullion Index ended in the red on Friday, tracking a weak close in domestic gold and silver futures. 

Prices crashed on Friday as a rebound in U.S. bond yields and a surprise increase in September retail sales dented bullion's safe-haven appeal. 

Domestic silver prices could start flat to marginally stronger this Monday morning, tracking overseas prices. 

Technically, MCX Silver December range for the day is 61200- 64300. 

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

COMEX gold trades marginally higher near $1771/oz after a 1.6% decline in the previous session. Gold trades higher supported by disappointing Chinese economic data, persisting inflation concerns, and retreat in US dollar index and US bond yields from recent highs. 

However, weighing on price is relative stability in equity markets amid some upbeat US economic data and corporate earnings results and continuing ETF outflows. 

Gold has corrected sharply after testing $1800/oz and we may see choppy trade amid mixed factors however general trend is still positive owing to increasing challenges to global economy 

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

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

December Gold closing price 47213, Support 1 - 47050, Support 2 - 46850, Resistance 1 - 47520, Resistance 2 - 47700. 

December Silver closing price 63271, Support 1 - 62800, Support 2 - 62200, Resistance 1 - 63710, Resistance 2 - 64335. 

(Disclaimer: The views/suggestions/advice 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.)