Gold Price Today: Yellow metal trades higher; buy on dips for a target of Rs 49600: Experts

Indian Gold MCX December futures trade higher on Tuesday, following positive trend seen in the international spot prices as concerns over broadening inflationary risks kept bullion’s safe-haven appeal intact.

Richmond Federal Reserve President Thomas Barkin said on Monday the US Fed will not hesitate to raise interest rates if it concludes high inflation threatens to persist, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.12 per cent higher at Rs 49,357 per 10 grams at 0930 hours. The December silver futures were trading 0.49 per cent higher at Rs 66,887 a kilogram.

Gold and silver showed roller coaster moves on Monday and pulled back from the five- and three-month highs. Both precious metals settled on a slightly weaker note in the international markets.

Gold December futures contract settled at $1866.60 per troy ounce, and silver December futures contract settled at $25.11 per troy ounce. Both precious metals settled on a weaker note in the domestic markets.

Traders remain cautious on the Federal Reserve's next step on interest rates after record rise in US inflation and booked some profits in precious metals, suggest experts. Rising global inflation is also supporting precious metals.

“We expect both the precious metals to remain firm and any dips in the prices would be a buying opportunity at lower levels. Gold has support at $1852-1840 per troy ounce and resistance at $1878-1892 per troy ounce; silver has support at $24.88-24.55 per troy ounce and resistance at $25.40-25.70 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“At MCX, Gold has support at 49100-48850 and resistance at 49500-49770; silver is having support at 66100-65700 and resistance at 67200-67700 levels,” he said.

Jain suggests buying gold on dips around 49100 with a stop loss of 48850 for the target of 49600 and silver around 66100 with a stop loss of 65500 for the target of 67200.

Technical Indicators:

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

COMEX gold trades marginally higher near $1870/oz after a 0.1% decline yesterday. Gold continues to trade near June highs however the momentum has stalled amid mixed factors.

Supporting gold price is increasing demand as an inflation hedge and choppiness in equities. However, weighing on price is higher US dollar and bond yields amid expectations that Fed may act soon to keep a check on inflation.

Gold may remain range-bound amid mixed factors. However, fresh buying should be at dips as central banks ponder monetary tightening.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices ended weaker on Monday after hitting 5-month highs weighed down by a stronger US Dollar and strengthening bond yields.

Domestic gold prices could start with small gains this Tuesday morning, tracking a positive start in overseas prices.

A weaker Rupee could also help push prices higher this Tuesday.

The most active Call strikes for November expiry option MCX gold contract are 49000 and 50000. The most active Put strikes for November expiry option gold contract is 47000, 48000 and 49000.

Technically, if MCX Gold December trades above 49300 it could test the resistance zones at 49670-49870 levels. Support zones is 49100-48900 levels.

International silver prices have started with small gains this Tuesday morning in Asian trade.

Technically, if COMEX Silver December trades above $25.180 levels, it could witness a upside momentum up to the resistance zones at $25.390-$25.675 levels. Support zones is at $24.895-$24.685 levels.

Domestic silver prices could start small gains this Tuesday morning, tracking firm overseas prices.

Technically, if MCX Silver December trades above 67055 it could test the resistance zones at 67545-67925 levels. Support zones is at 66190-65810 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.)