Gold Price Today: Yellow metal up Rs 300 on MCX; buy gold for Rs 47800 target, says expert

India Gold MCX December futures were trading firm on Friday despite ending flat on Thursday amid Thanksgiving holiday, US inflation data and other global cues. The Bullion Index ended marginally in the red on Thursday, tracking weak domestic futures. At around 11.15 am, the precious metal was trading with gains of Rs 314 at Rs 47735 per 10-gram after opening at Rs 47615 per 10-gram on the Multi Commodity Exchange of India (MCX). Gold has closed at Rs 47421.00 per 10 gm on MCX on Thursday.  

"International spot gold and silver prices ended flat on Thursday in a lackluster trade due to thanksgiving holiday in the U.S.  Inflation concerns continued to lend support. Additionally, a rise in Covid cases in Europe and a new variant, detected in South Africa, has prompted Britain to introduce travel restrictions on South Africa and capped downside in bullion," said Sriram Iyer, Senior Research Analyst at Reliance Securities

He further said that an upside remained capped amid expectations that the Federal Reserve may hasten its monetary tightening to cool rising prices.  

The expert said trading is likely to be thinned by the U.S. Thanksgiving holiday. Technically, if LBMA Gold continues to trade below $1795 level, it could witness a Bearish momentum up to $1770-$1760 levels. Resistance is at $1805-$1810 levels.  

Technical indicator:

Technically, if MCX Gold February sustains below 47800 level, it will continue its negative trend up to 47600-47500 levels. Resistance is at 48000-48100 levels.  

"Gold and silver traded steady in the international markets on Thursday, due to holiday in the U.S. markets. Both the precious metals were unchanged in the international markets," said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research

He said Gold and silver prices held their lower level supports after FOMC meeting minutes.  

"Gold and silver prices were also supported by increasing covid-19 cases in Europe and announcement of lockdown in Germany. European economic data released this week were also lower than expected and could support precious metal prices. The Chinese financial press also said that the government will continue its fiscal stimulus to support the economy. Global inflation remains alleviated due to higher liquidity in the system," said the analyst.

Technical indicator:  

At MCX, gold has support at 47250-47100 and resistance at 47660-47850 and silver support is placed at 62660-62220 and resistance at 63600-64100 levels. "We suggest buying gold above 47400 with a stop loss of 47180 for the target of 47800 and silver around 62900 with a stop loss of 62500 for the target of 64000," he added.

(Disclaimer: The views/suggestions/advices 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.)