Gold Price Today: Yellow metal trades higher; buy for a target of Rs 48100: Experts

India Gold MCX December futures trade higher on Monday following positive trend seen in the international spot prices. Spot gold was trading at $1,792.95 per ounce.

“The metal rallied to its highest since early September on Friday before trimming gains on Fed Chairman Jerome Powell’s comments on tapering,” said a Reuters report.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.19 percent higher at Rs 47,887 per 10 grams at 0930 hours. The December silver futures were trading 0.46 percent higher at Rs 65,959 a kilogram.

On Friday, gold and silver prices settled on a positive note in the international markets. Gold December futures contract settled at $1,793.35 per troy ounce, and silver December futures contract were settled at $24.39 per troy ounce. Domestic markets also settled on a positive note.

Gold and silver gained on Friday due to rising global inflations. Gold prices gained second straight week and crossed $1800 per troy ounce but after the Federal Reserve chairman’s comment for bond tapering earlier this year its triggered profit-taking from higher levels, suggest experts.

“Fed Chairman, during a virtual appearance at a Bank of International Settlements event, confirmed the central bank is on track to start tapering earlier this year and transitory inflation might last a little longer than expected,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect both the precious metals to remain positive this week and any dip in the prices would be a buying opportunity in both the precious metals. Gold has support at $1784-1772, while resistance at $1804-1818 per troy ounce,” he said.

At MCX, Gold has support at 47600-47440 and resistance at 48050-48260; silver has support at 65220-64700 and resistance at 66100-66600. “We suggest buying gold around 47660 with a stop loss of 47440 for the target of 48100 and silver around 65200 with a stop loss of 64700 for the target of 66100,” added Jain.

Technical Indicators

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

COMEX gold trades little changed near $1795/oz after a 1.6% gain last week. Gold remains supported by weaker US dollar, retreat in bond yields, increasing inflation concerns, renewed virus concerns, and mixed economic data from major economies.

However, weighing on price is lack of investor buying, strength in equity markets, and increasing expectations of Fed’s monetary tightening.

Gold continues to struggle to sustain above the $1800/oz level which shows a lack of confidence however with increasing challenges to the global economy, prices may remain supported.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices trimmed gains on Friday after U.S. Federal Reserve Chair Jerome Powell said he expected inflation to ease next year and that the U.S. central bank was on track to begin winding down its stimulus.

International silver prices also trimmed gains on Friday. Domestic gold & silver ended firm on Friday but were off highs, tracking overseas prices.

Bullion Index also ended in the green on Friday.

Domestic gold prices could start flat this Monday morning, tracking overseas prices.

Technically, MCX Gold December resistances are at 48100 and 48500. Supports remain at 47400 and 47150.

International silver prices have started mixed this Monday morning in Asian trade with spot starting higher, while futures staring marginally weaker.

Technically, LBMA Silver resistances are at $25.00 and $26.30. Supports remain at $23.40 and $22.70.

Domestic silver prices could start flat this Monday morning, tracking overseas prices. Technically, MCX Silver December resistances are at 66700 and 67600. Supports are at 64700 and 63800.

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

The US Bureau of Labor Statistics has recently released the inflation data for September concerning the Consumer Price Index (CPI). The report showed that the CPI - urban (CPI-U) has gained by 0.4%, crossing the expectations.

The manufacturing business outlook of Philadelphia fell a reading of 23.8 in October, down from its September reading of 30.7. The report along with festive demand in India made the gold prices highly volatile on last Friday.

Buy Zone - 47900 for the target of 48200

Sell Zone Below- 47600 for the target of 47400