Gold Price Today: Yellow metal, Silver likely to remain volatile ahead of US GDP data; check support levels, buying range

India Gold MCX December futures were trading higher on Thursday, tracking positive trend in the international spot prices, but hovered near a seven-week low amid strength in the US dollar.

Spot gold was trading at $1,729.83 per ounce. Prices fell to their lowest level since Aug. 9 at $1,720.49 on Wednesday. The dollar index steadied near a year’s high touched on Wednesday, raising gold’s cost for buyers in other currencies, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), December gold contracts were trading 0.37 percent higher at Rs 45,938 per 10 grams at 0930 hours. December silver futures were trading 0.21 percent higher at Rs 58,511 a kilogram.

Gold and silver prices crashed again on Wednesday amid strong gains in the dollar index. Both the precious metals settled on a weaker note in the international markets.

Gold December futures contract settled at $1722.90 per troy ounce, and silver December futures contract settled at $21.49 per troy ounce. Both the precious metals settled on a weaker note in the domestic markets.

Gold gave up early gains and slipped to six-week lows and silver prices also plunged to 14-month lows after strong gains in the dollar index.

“The U.S. President Biden’s infrastructure spending bill is set for a House of Representatives vote on Thursday. We expect both the precious metals to remain volatile in today’s session ahead of the U.S. GDP data, volatility in the dollar index and voting on U.S. infrastructure spending bill,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“At MCX, Gold has support at 45550-45400 and resistance at 45920-46100; silver is having support at 58000-57500 and resistance at 58800-59400 levels,” he said. Jain suggests buying silver around 58100 with a stop loss of 57700 for the target of 59000.

Technical Indicators:

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

COMEX gold trades marginally higher near $1732/oz after a 0.8% decline yesterday when it tested a 7-week low. Gold inched up today as the US dollar index paused after its recent rally to a 1-year high.

Also supporting price is mixed economic data, concerns about China, rising inflation pressure, and the US debt ceiling debate. However, weighing on price is continuing ETF outflows which show weaker investor interest.

Also weighing on price is increasing expectation of Fed’s monetary tightening. Gold is witnessing some relief rally however it may not sustain as Fed's monetary tightening expectations may keep the US dollar supported

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

Traders are advised to create fresh long positions in Gold and Silver near given support, traders should focus on important technical levels given below for the day :

December Gold closing price 45769, Support 1 - 45500, Support 2 - 45250, Resistance 1 - 46030, Resistance 2 - 46260.

December Silver closing price 58386, Support 1 - 57700, Support 2 - 57000, Resistance 1 - 59750, Resistance 2 - 61000.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold & silver spot & COMEX futures fell Wednesday as the dollar rose and on expectations, the U.S. Federal Reserve could soon begin winding down its economic support measures.

Domestic gold and silver prices ended weaker on Wednesday, tracking overseas prices. Bullion Index ended in the red on Wednesday, tracking weak domestic futures.

The dollar rallied to a one-year high against rival currencies, boosted by increased expectations for a reduction in the U.S. Federal Reserve's asset purchases starting in November and an interest rate hike, possibly in late 2022.

Domestic gold prices could trade flat this Thursday morning.

Technically, if MCX Gold December trades below 45800 levels, the markets could continue its Bearish momentum up to 45600-45400 levels. Resistance at 45900-46100 levels.

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

Technically, if LBMA Silver continues below $22.00 level the markets could continue its downside momentum up to $21.20-$20.50 levels. Resistance is at $21.80-$22.10 levels.

Domestic silver prices could start flat to marginally higher this Thursday morning, tracking overseas prices.

Technically, if MCX Silver December trades below 58500 level the markets could continue its bearish momentum up to 57900-57000 levels. Resistance is at 59000-60200 levels.

(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.)