India Gold MCX February futures trade higher on Wednesday, following positive trend seen in the international spot prices as US Treasury yields ease from their recent highs.

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Benchmark 10-year and 30-year US Treasury yields pulled back from their one-week highs hit on Tuesday, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.15 per cent higher at Rs 48,134 per 10 grams at 0915 hours. The March silver futures were trading 0.08 per cent lower at Rs 61,778 a kilogram.

Gold and silver prices recovered from their lows on Tuesday. Both the precious metals were settled on a positive note in the international markets.

Gold February futures contract settled at $1784.70 per troy ounce and silver March futures contract settled at $22.52 per troy ounce. Both the precious metals settled on a positive note in the domestic markets.

Easing fear of Omicron supported global equity markets and cap gains of precious metals. Gold and silver prices were also struggling at higher levels in anticipation of faster tapering by the US Federal Reserve and raising interest rates sooner than expected, suggest experts.

“Market is waiting for the Federal Reserve policy stance after this week’s US consumer inflation data. We expect both the precious metals to remain volatile in today’s session and gold prices could face steep resistance around $1800 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“Gold has support at $1772-1758 per troy ounce and resistance at $1800-1812 per troy ounce; silver is having support at $22.30-22.00 per troy ounce and resistance at $22.84-23.10 per troy ounce,” he said.

At MCX, Gold has support at 47800-47660 and resistance at 48220-48400; silver has support at 61400-61000 and resistance at 62100-62600. Jain suggests buying silver around 61500 with a stop loss of 61000 for a target of 62500.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start flat this Wednesday morning, tracking a positive start in the overseas prices.

Technically, if MCX Gold February trades above 48000 level, it could continue its positive trend up to 48220-48385 levels. Support zone is at 47845-47630 levels.

International spot silver prices have started flat to marginally higher this Wednesday morning in Asian trade.

Technically, if COMEX Silver March trades below $22.460 level, it could witness a bearish momentum up to $22.295-$22.065 levels. Resistance zone is at $22.670-$22.855 levels.

Domestic silver prices could start flat to marginally higher this Wednesday morning.

Technically, if MCX Silver March trades above the 61680 level, it could witness a bullish momentum up to 62190-62550 levels. The support zone is at 61315-60805 levels.

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

Short term investors are advised to create fresh longs for in small dips near given support levels, traders should focus on important technical levels given below for the day:

February Gold closing price 48060, Support 1 - 47850, Support 2 - 47600, Resistance 1 - 48170, Resistance 2 - 48300.

March Silver closing price 61828, Support 1 - 61300, Support 2 - 60600, Resistance 1 - 62100, Resistance 2 - 62500.

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

COMEX gold trades marginally higher near $1790/oz after a 0.3% gain yesterday. Gold has recovered from recent lows but remains largely in a range as support from geopolitical tensions, virus concerns, the stress in China’s property sector is countered by increasing expectations of the Fed’s monetary tightening, weaker investor interest, and recovery in equities.

Gold may remain choppy however nervousness ahead of Fed meeting next week may limit any major upside.

(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.)