India Gold MCX February futures trade higher on Friday tracking positive trend seen in the international spot prices, but March Silver futures trades flat with a negative bias.

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Bullion prices have fallen 0.4% so far in the week as investors worried higher inflation and a tightening labour market could prompt the US Fed to accelerate the pace of its asset purchase reductions, said a Reuters report.

On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.14 per cent higher at Rs 48,008 per 10 grams at 0915 hours. The March Silver futures were trading 0.13 per cent lower at Rs 60,720 a kilogram.

Gold and silver plunged again amid strength in the US Dollar index and a decline in unemployment claims in the United States. Both the precious metals settled on a weaker note in the international markets.

Gold February futures contract settled at $1776.70 per troy ounce and Silver March futures contract settled at $24.01 per troy ounce. Both the precious metals settled on a weaker note in the domestic markets.

Gold and silver prices slipped again on Thursday amid strength in the dollar index and weakness in the crude oil prices. Silver prices slipped to nine-week lows ahead of the U.S. consumer price index data.

“Easing fears of Omicron also boosted investors sentiment and the moved towards riskier assets from the safe haven bullions. We expect both the precious metals to remain volatile in today’s session,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1762-1750 per troy ounce and resistance at $1788-1800 per troy ounce; Silver has support at $21.84-21.55 per troy ounce and resistance at $22.35-22.66 per troy ounce.

“At MCX, Gold has support at 47770-47600 and resistance at 48100-48280; silver has support at 60500-60100 and resistance at 61220-61600,” he said.

Jain suggests buying in gold on dips around 47700 with a stop loss of 47480 for the target of 48100.

Technical Indicators:

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

COMEX gold trades marginally higher near $1780/oz after a 0.5% decline yesterday. Gold is range bound ahead of US inflation data due today which may give more clarity on Fed’s monetary policy stance.

Support from virus concerns, geopolitical tensions, and stress in China’s property sector is countered by Fed’s tightening expectations and firmer US dollar.

Gold may remain choppy amid lack of clear cues but the prospect of Fed’s tightening may keep pressure on prices

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start higher this Friday, tracking a positive start in the overseas prices.

Technically, if MCX Gold February trades below 47990 level, it could fall up to the support zone at 47820-47700 levels. The resistance zone is at 48110-48280 levels.

International spot silver prices have started flat this Friday morning in Asian trade ahead of U.S inflation data.

Technically, if COMEX Silver March trades below $22.110 level, it could witness a bearish momentum up to $21.745-$21.475 levels. The resistance zone is at $22.380-$22.745 levels.

Domestic silver prices could start flat this Thursday morning.

Technically, if MCX Silver March trades below 60975 level, it could witness a bearish momentum up to 60225-59645 levels. The resistance zone is at 61550-62305 levels.  

(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.)