India Gold MCX February futures trades flat on Tuesday tracking muted trend seen in the international spot prices.

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On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.15 per cent lower at Rs 48,170 per 10 grams at 0915 hours. The March Silver futures were trading 0.16 per cent lower at Rs 61,320 a kilogram.

Gold and silver showed profit taking on Monday in the international markets despite Omicron fears and weakness in the global equity markets.

Both the precious metals settled on a slightly weaker note. Gold February futures contract settled at $1794.60 per troy ounce and Silver March futures contract settled at $22.29 per troy ounce. Due to strength in the rupee both the precious metals were also settled on a weaker note in the domestic markets.

Gold and silver prices showed profit taking on Monday ahead of the Christmas and New-year holidays. Despite weakness in the global equity markets and Omicron fears both the precious metals were not able to catch safe haven bids this week.

Investors are looking cautious on the Federal Reserve governor’s hawkish statements for raising interest rates, suggest experts. Investors are now expecting three rate hikes in 2022 and booked some profits ahead of the holiday season.

“We expect both the precious metals to remain choppy ahead of the holiday's trade in a tight range. Gold is expected to be traded in the range of $1772-1814 per troy ounce and silver is expected to be traded in the range of $21.84-22.70 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1784-1772 and resistance at $1800-1814 per troy ounce; silver has support at $22.00-21.84 and resistance at $22.55-22.70 per troy ounce.

“At MCX, Gold is having support at 48100-47920 and resistance at 48400-48650; Silver has support at 61100-60800 and resistance at 61700-62220. We expect range bound trading in both the precious metals in today’s session,” he said.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start flat this Tuesday, tracking a flat start in the overseas prices.

Technically, if MCX Gold February trades below the 48300 level, it could witness a bearish momentum up to 48150-48000 levels. Resistance zone is at 48400-48550 levels.

International spot silver prices have started flat this early Tuesday morning in Asian trade.

Technically, if LBMA Silver trades above $22.00 level, it could continue its bearish momentum up to $21.70-$20.50 levels. Resistance zone is at $22.90-$23.50 levels. 

Domestic silver prices could start flat this Tuesday morning, tracking a flat start in the overseas prices.

Technically, if MCX Silver March trades above 61500 level, it could continue its bearish momentum up to 60700-60000 levels. Resistance zone is at 61900-62600 levels.

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

As per technical chart, Gold and Silver both are looking attractive on the daily chart. Momentum indicator RSI is also indicating the same on the hourly as well as daily chart.

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

February Gold closing price 48240, Support 1 - 48000, Support 2 - 47800, Resistance 1 - 48360, Resistance 2 - 48500.

March Silver closing price 61417, Support 1 - 61000, Support 2 - 60500, Resistance 1 - 61820, Resistance 2 - 62200.

(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.)