Gold Price Today: Yellow metal trades lower; support seen at Rs 47,580: Experts

India Gold MCX December futures were trading lower on Tuesday following muted trend seen in the international spot prices amid firm dollar that made bullion less appealing for holders of other currencies.

Investors' eye outcome of the U.S. Federal Reserve policy meeting amid growing concerns over a sustained bout of inflation, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.20 per cent lower at Rs 47,807 per 10 grams at 0930 hours. The December silver futures were trading 0.24 per cent lower at Rs 64,633 a kilogram.

Gold and silver rebounded after a previous session's fall on Monday amid profit-taking in the dollar index. Both the precious metals settled on a positive note in the international markets.

Gold December futures contract settled at $1795.80 per troy ounce and silver December futures contract settled on a positive note at $24.07 per troy ounce. Both the precious metals settled on a positive note in the domestic markets.

The dollar index showed profit taking on Monday after a strong gain in Friday’s session. Bond yields in the U.S. also dip from their highs and support both the precious metals.

The market is eying this week’s U.S. Federal Reserve meeting outcomes and its decision on bond tapering, suggest experts.

“If the U.S. Federal Reserve started tapering from this month could restrict further gains of precious metals but delaying the tapering could push precious metal prices higher,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect both the precious metals to remain volatile ahead of the Federal Reserve meetings. At MCX, Gold has support at 47750-47580 and resistance at 48055-48240; silver has support at 64400-64100 and resistance at 65220-65500 levels,” he said.

Jain suggests buying gold on dips around 47750 with a stop loss of 47580 for that target of 48100.

Technical Recommendations:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices ended higher on Monday as the dollar eased and equities pared gains, with the focus now on the U.S. Federal Reserve timetable for a rollback in stimulus measures at a key meeting this week.

The U.S. Federal Reserve, which concludes a two-day meeting on Wednesday, is expected to say it will start to roll back bond purchases, a sign that it sees the U.S. economy recovering, though the focus is on clues about rates lift-off.

Domestic gold prices could start with small cuts this Tuesday morning, tracking overseas prices.

Technically, if MCX Gold December trades below 48039 it could test the support zones at 47678-47454 levels. Resistance zones is at 48039-48176 levels.

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

Technically, if COMEX Silver December trades below $24.019 levels, it could witness a downside momentum up to the support zones at $23.864-$23.654 levels. Resistance zones is at $24.229-$24.384.

Domestic silver prices could start with small cuts this Tuesday morning, tracking overseas prices.

Technically, if MCX Silver December trades below 64664 it could test the support zones at 64347-63904 levels. Resistance zones is at 65107-65424 levels.

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

COMEX gold trades marginally lower near $1791/oz after yesterday's modest gain. Gold continues to trade in a broad range near $1800/oz amid mixed trade in US dollar and bond yields and positioning ahead of the Fed meeting this week where the central bank may make an announcement on bond tapering.

Amid other factors, support from mixed economic data, inflation concerns, and virus concerns are countered by firmness in equity markets and mixed ETF flows. Gold may remain rangebound ahead of the Fed decision however increasing challenges for the global economy may keep prices supported.

(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.)