India Gold MCX October futures slipped in morning trade on Monday to trade below 46,000 per 10-gram, following muted trend seen in the international spot prices amid strength in the US Dollar.

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The dollar index hit a near one-month high, denting gold’s appeal for holders of other currencies, said a Reuters report. Investors await guidance from the U.S. Federal Reserve on when it is likely to start withdrawing its bond-buying programme, it said.

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On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.12 percent lower at Rs 45,930 per 10 grams at 0930 hours. September silver futures were trading 0.93 percent lower at Rs 59,436 a kilogram.

On Friday, gold and silver prices settled on a weaker note in the international markets. Gold December futures contract settled at $1,753.95 per troy ounce, while silver December futures contract settled at $22.36 per troy ounce. Domestic markets were also settled on a weaker note.

Gold and silver prices crashed last week after upbeat U.S. economic data and strength in the dollar index. Gold prices slipped to over 4-weeks low, and silver also followed the trend.

“Upbeat U.S. retail sales raised chances of early tapering by the U.S. Federal Reserve. We expect both the precious metals to remain volatile this week ahead of the U.S. Federal Reserve monetary policy meeting,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“At MCX, Gold has support at 45800-45550 and resistance at 46200-46480; silver has support at 59300-58800 and resistance at 60600-61100,” he said.

Jain expects a recovery in both precious metals from their lows this week, but suggests cautious trade ahead of the U.S. Federal Reserve monetary policy meeting outcomes.

Technical Indicators:

Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited

Positional traders are advised to create fresh buy positions, especially in Gold in small dips near 45900-45700. Traders should focus on important technical levels given below for the day:

October Gold closing price 45986, Support 1 - 45700, Support 2 - 45450, Resistance 1 - 46200, Resistance 2 - 46510.

December Silver closing price 59992, Support 1 - 59500, Support 2 - 59000, Resistance 1 - 61000, Resistance 2 - 62000.

Sandeep Matta, Founder, TRADEIT Investment Advisor

Gold is struggling to find new buyers and hit a 4-week low while trading below $1750/oz as market participants are expecting less dovish commentary from Fed monetary policy this week.

The precious metal is trading around the technical support and may see some speculative interest around these levels therefore we advised to execute trades strictly as per the pivot levels.  

Key level for GOLD – 46026

Buy Zone Above – 46030 for the target of 46150-46250
Sell Zone Below – 46000 for the target of 45800-45600

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold spot and futures crashed on Friday as the dollar gained, putting it on course for a second weekly dip with investors focused on the U.S. Federal Reserve's tapering strategy.

International silver spot and futures also crashed on Friday, tracking the strength of the dollar and weak gold prices.

Domestic gold and silver futures also tumbled on Friday, tracking weak overseas prices.

Technically, MCX Gold October below 46300 level could see a Bearish momentum up to 45800-45500 levels. Resistance is at 46200-46500 levels.

MCX Silver December below 60500 level could see 59300-58000 levels. Resistance is at 60700-61500 levels.

MCXBULLDEX September could trade on Bearish note within the range of 13500-13850 levels.

(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.)