Gold Price Today: Yellow metal trades higher; buy on dips around Rs 48,000 if any: Experts

India Gold MCX February futures trade higher on Monday, following positive trend seen in the international spot prices, which were trading above $1,800 per ounce amid slightly weak US Treasury Yields.

Benchmark US Treasury yields edged down from their highest in more than a week touched in the previous session, reducing the opportunity cost of holding bullion, which pays no interest, said a Reuters report.

On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.18 per cent higher at Rs 48,205 per 10 grams at 09:20 hours. The March Silver futures were trading 0.17 per cent lower at Rs 62,190 a kilogram.

On Friday, the gold and silver prices settled on a positive note in the international markets. Gold February futures contract settled at $1,810.10 per troy ounce, and silver March futures contract settled at $22.91 per troy ounce. Due to strength in the rupee, domestic markets were settled on a slightly weaker note.

The gold and silver prices gained last week amid profit-taking in the dollar index and downbeat US economic data.

Gold prices crossed $1800 per troy ounce and silver prices also crossed its crucial resistance of $22.55 per troy ounce on a weekly closing basis. However, gains in the benchmark 10-year bond yields in the United States and strength in global equities cap gains, suggest experts.

“We expect both the precious metals to remain volatile this week due to truncated trading in the international markets. Gold is expected to test $1830 per troy ounce and silver could also test $23.50 per troy ounce levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1800-1788, while resistance at $1822-1834 per troy ounce. Silver has support at $22.70-22.44, while resistance is at $23.10-23.40 per troy ounce.

“At MCX, Gold has support at 47970-47800 and resistance at 48330-48500; silver is having support at 61900-61500 and resistance at 62660-63100,” he said.

Jain suggests buying gold on dips around 48,000 with a stop loss of 47,780 for the target of 48,400 and silver around 61,900 with a stop loss below 61,500 for the target of 62,800.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start flat to marginally higher this early Monday morning tracking the overseas prices. Technically, MCX Gold February resistance zone is at 48380-48600 levels. Support zone is at 47980-47870 levels. International spot silver prices have started flat to marginally higher this early Monday morning in Asian trade. Technically, if LBMA Silver trades above $22.50 levels, it could continue its bullish momentum up to $23.12-$23.70 levels. Support zone is at $22.30-$21.90 levels. Domestic silver prices could start flat to higher early Monday morning tracking the overseas prices. Technically, if MCX Silver March trades above 62000 level, it could witness a Bullish momentum up to 62700-63200 levels. Support zone is at 61700-61000 levels.

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

COMEX gold trades little changed near $1810/oz after a 0.4% gain last week. Gold is stable as support from virus concerns, rising inflationary pressure and slowdown in China is countered by some recovery in US dollar index and stable equities. ETF flows also show weaker investor interest. Gold may remain choppy amid lack of fresh triggers and holiday impacted trade however we may not see a sustained rise unless price breaks past the $1815/oz and as Fed’s monetary tightening expectations lends support to the US dollar.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)