Gold Price Today: Yellow metal trades higher; buy for a target of Rs 48, 180, say experts

India Gold MCX December futures traded higher on Monday following positive trend seen in the international spot price that rose to a 2-month high as a retreating dollar bolstered the precious metal`s appeal.

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The precious metal rose as much as 1.5% on Friday despite a better-than-expected U.S. payrolls report that suggested economic activity was regaining momentum early in the fourth quarter, said a Reuters report.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.27 per cent higher at Rs 48,100 per 10 grams at 0930 hours. The December silver futures were trading 0.58 per cent higher at Rs 64,707 a kilogram.

On Friday, gold and silver prices settled on a positive note in the international markets. Gold December futures contract settled at $1,819.95 per troy ounce, and silver December futures contract settled at $24.25 per troy ounce.

Gold and silver prices gained last week after the U.S. Federal Reserve meeting outcomes. The U.S. Fed starts bond tapering from this month but in a phased manner until June, 2022.

“Global equity market rose and the dollar index showed profit taking from their highs. We expect both the precious metals to remain positive this week and gold prices could test $1850 per troy ounce levels again. Any dips in the prices would be a buying opportunity in both the precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1804-1792, while resistance at $1832-1845 per troy ounce. Silver has support at $24.00-23.70, while resistance is at $24.50-24.84 per troy ounce.

“At MCX, Gold has support at 47770-47650 and resistance at 48100-48330; silver has support at 64000-63660 and resistance at 64800-65220. We suggest buying gold on dips around 47770 with a stop loss of 47550 for the target of 48180,” added Jain.

Technical Indicators:

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

COMEX gold trades marginally higher near $1820/oz after a 1.3% gain in previous session. Gold trades higher supported by drop in US bond yields as Fed decided to take a gradual approach on monetary tightening.

Also supporting price is inflation concerns. However, weighing on price is upbeat US jobs report, continuing strength in equity markets and ETF outflows.

Gold has rallied sharply in last few sessions amid lack of any aggressive move by Fed but may struggle to build on the gains amid improved risk sentiment.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold & silver prices ended higher on Friday as major central banks' dovish tone on interest rates this week lifted the demand for the safe-haven metal.

Prices recovered from an earlier drop despite data showing U.S. employment increased more than expected in October.

Domestic gold prices could start with gains this Monday morning, tracking firm overseas prices.

Technically, if MCX Gold December trades above 47760 it could test the resistance zones at 48226-48480 levels. Support zones is 47506-47040 levels.

International silver prices have started with gains this Monday morning in Asian trade. Technically, if COMEX Silver December trades above $24.026 levels, it could witness an upside momentum up to the resistance zones at $24.616-$24.976 levels. Support zones is at $23.796-$23.436 levels.

Domestic silver prices could start with cuts this Wednesday morning, tracking weak overseas prices.

Technically, if MCX Silver December trades below 64029 it could test the resistance zones at 64783-65234 levels. Support zones is at 63578-62824 levels.

(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.)