Gold Price Today: Yellow metal trades above 48,000; buy Silver for target of 62,200: Experts

India Gold February MCX futures trade flat on Wednesday but above Rs 48000 per 10 gram despite positive trend seen in the international spot prices.

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“Spot gold was little changed at $1,789.12 per ounce. US Treasury yields were higher on Tuesday as traders focused on optimistic economic conditions and discounted inflation fears at a 20-year bond auction,” said a Reuters report.

Higher yields increase the opportunity cost of holding bullion, which pays no interest, it said.

On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.07 per cent lower at Rs 48,035 per 10 grams at 10.00 hours. The March Silver futures were trading 0.01 per cent higher at Rs 61,810 a kilogram.
 
Gold was stuck in a range, but silver rose with the support of base metals. Both the precious metals settled on a mixed note in the international markets on Tuesday.

Gold February futures contract settled at $1788.70 per troy ounce while silver March futures contract settled at $22.53. Both the precious metals settled on a mixed note in the domestic markets.

Gold prices rallied in the early trading session and crossed $1800 per troy ounce on Tuesday but rebound in the U.S. benchmark bond yields, steady dollar, and strength in the global equity markets triggered profit-taking once again.

“Silver prices gained amid strength in the base metals. Silver tested its resistance level of $22.55 once again. We expect gold and silver prices to remain volatile and expected to be traded in a tight range ahead of the Christmas and New-year holidays,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“Precious metals will find supports due to spreading Omicron virus but strong dollar continues to restrict gains. Gold has support at $1780-1768 per troy ounce and resistance at $1800-1812 per troy ounce; silver is having support at $22.30-22.10 per troy ounce and resistance at $22.74-23.00 per troy ounce,” he said.

At MCX, Gold has support at 47920-47770 and resistance at 48240-48400; silver has support at 61300-60900 and resistance at 62200-62660.

Jain suggests buying silver on dips around 61300 with a stop loss of 60900 on a daily closing basis for the targets of 62200.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start flat to marginally higher this early Wednesday morning tracking the overseas prices.

Technically, the MCX Gold February resistance zone is at 48245-48425 levels. The support zone is at 47940-47810 levels.

International spot silver prices have started with small gains this early Wednesday morning in Asian trade, tracking the weakness of the Greenback.

Technically, the COMEX Silver March support zone is at $22.210-$21.885 levels. The resistance zone is at $22.830-$23.125 levels.

Domestic silver prices could start with small gains this Wednesday morning, tracking a positive start in the overseas prices.

Technically, the MCX Silver March support zone is to 61260-60710 levels. The resistance zone is at 62355-62905 levels.

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

COMEX gold trades mixed near $1790/oz after a 0.3% decline yesterday. Gold has come off highs as risk sentiment has stabilized somewhat while US bond yields have edged up.

However, supporting prices are persisting virus concerns amid the increasing spread of the variant and restrictions imposed to limit its spread. ETF investors have also moved to the sidelines indicating a lack of direction.

Gold may remain range-bound however Fed’s tightening outlook may keep the US dollar supported and this may weigh on prices.

 (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.)