India Gold MCX December futures trade higher on Friday following positive trend seen in the international spot prices amid soft dollar.

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Spot gold traded near $1,785.00 per ounce. “Bullion prices were en route to the second week of gains, aided by a weaker dollar which was set to decline this week,” said a Reuters report.

 

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Gold and silver showed routine profit-taking on Thursday. Both the precious metals were settled on a weaker note in the international markets.

Gold December futures contract settled at $1781.90 per troy ounce, and silver December futures contract settled at $24.17 per troy ounce. Both the precious metals were also settled on a weaker note in the domestic markets.

Gold and silver showed corrective pullbacks after a recent rally after a rebound in the dollar index on Thursday. However, global inflation concerns due to higher energy and commodity prices are supporting safe-haven buying in precious metals.

“We expect gold and silver to continue to hold its key support levels and any dip in the prices would be a buying opportunity in both precious metals. Gold is expected to test $1800 per troy ounce levels in the upcoming sessions,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“At MCX, Gold has support at 47180-47000 and resistance at 47600-47850; silver is having support at 64700-64220 and resistance at 65600-66100 levels,” he said.

Jain suggests buying gold around 47250 with a stop loss of 47040 for the target of 47660 and silver around 64700 with a stop loss of 64200 for the target of 65800.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices ended flat to weaker in a choppy trading on Thursday, pressured by rising U.S. bond yields that offset support from concerns over rising inflation and China's troubled property sector.

Additionally, a rebound of the dollar also capped upside. International silver prices ended weaker on Thursday.

Domestic gold & silver ended weak on Thursday, tracking overseas prices.

Bullion Index ended in the red on Thursday.

Investors continue to anticipate the Fed’s tapering next month tracing strong corporate earnings, which boosted hopes of a continued economic recovery.

Domestic gold prices could start with gains this Friday morning, tracking overseas prices. Technically, MCX Gold December resistances remain at 47650 and 47850. Supports remain at 47200 and 46950.

International silver prices have started flat to higher this Friday morning in Asian trade. Technically, LBMA Silver resistances remain at $24.88 and $25.70. Supports remain at $23.70 and $22.99.

Domestic silver prices could start flat to higher this Friday morning, tracking overseas prices.

Technically, MCX Silver December resistances remain at 65900 and 66200. Supports remain at 64700 and 64000.

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

COMEX gold trades marginally higher near $1788/oz after a 0.2% decline yesterday. Gold trades higher supported by mixed economic data from major economies, rising inflation concerns and renewed virus concerns and pause in the recent rise in equities.

However, weighing on price is continuing ETF outflows, higher bond yields, and increased expectations of Fed’s monetary tightening.

Gold continued to trade firm holding on to the gains noted earlier this week however price is yet to break past the $1800/oz level and with choppiness in larger financial market, mixed to positive trade is likely.

Expert: Dr. Ravi Singh, Vice President & Head of Research at ShareIndia

Gold MCX traded in a range bound zone yesterday withholding the pressure from a stronger dollar and higher US treasury yields. Traders are closely monitoring the remarks from Fed officials for clarity on the timeline of bond tapering.

Recently, two Fed officials said that the US central bank should begin winding down its stimulus measures, but it is too early to hike interest rates. We expect higher volatility in Gold due to increased demand during festive season.

Buy Zone - 47300 for the target of 47599
Sell Zone Below - 47100 for the target of 46900

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.