Gold Price Today: Yellow metal trades above Rs 49,000; buy the dip: Expert

India Gold MCX December futures trade flat, but it is trading above Rs 49,000 tracking muted trend seen in the international spot prices as US Dollar trades near a 16-month high.

The report drove the dollar to a fresh 16-month peak, pressuring bullion by raising its cost to buyers holding other currencies, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.10 per cent higher at Rs 49,089 per 10 grams at 0930 hours. The December silver futures were trading 0.30 per cent higher at Rs 66,435 a kilogram.

Gold and silver showed extreme volatility on Tuesday and pared gains after upbeat US retail sales data and strength in the dollar index. Both the precious metals settled on a weaker note in the international markets.

Gold December futures contract settled at $1854.10 per troy ounce, and silver December futures contract settled on a weaker note at $24.94 per troy ounce. Both the precious metals settled on a weaker note in the domestic markets.

“Rising global inflation and increase in covid-19 patients in China and Europe could support prices at lower levels. We expect both the precious metals to remain volatile in today’s session and gold is expected to hold $1832 per troy ounce and silver also holds $24.50 per troy ounce levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1844-1832 per troy ounce and resistance at $1866-1878 per troy ounce; silver has support at $24.70-24.44 per troy ounce and resistance at $25.20-25.55 per troy ounce.

“At MCX, gold is having support at 48850-48660 and resistance at 49280-49500; silver is having support at 65800-65400 and resistance at 66660-67200,” he said.

Jain suggests buying gold on dips around 48850 with a stop loss of 48660 for the target of 49300.

Technical Indicators:

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

COMEX gold trades marginally higher near $1855/oz after a 0.7% decline yesterday. Gold jumped to fresh June highs yesterday but failed to sustain and ended lower.

Gold is struggling to build on recent momentum amid increased debate about the Fed’s monetary tightening amid some upbeat economic data and mixed comments from central banks.

However, supporting price is rising inflation concerns, geopolitical tensions and renewed virus concerns. Gold’s sharp rise has made it vulnerable to profit-taking and we may see some correction if US dollar manages to hold firm

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

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

Technically, if MCX Gold December trades above 49200, it could test the resistance zones at 49429-49819 levels. Support zones is 48829-48619 levels.

International silver prices have started with small gains this Wednesday morning in Asian trade.

Technically, if COMEX Silver December trades above $25.085 levels, it could witness a upside momentum up to the resistance zones at $25.348-$25.751 levels. Support zones is at $24.683-$24.421 levels.

Domestic silver prices could start small gains this Tuesday morning, tracking firm overseas prices.

Technically, if MCX Silver December trades above 66600 it could test the resistance zones at 67077-67921 levels. Support zones is at 65759-65285 levels.

(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.)