India Gold MCX February futures trade flat on Monday, following positive trend seen in the international spot prices, while investors await a flurry of central bank meetings this week, including by the US Federal Reserve, for further direction.

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The US Fed is widely expected to signal a faster tapering of asset buying this week, and thus an earlier start to rate hikes, said a Reuters report. The European Central Bank and the Bank of Japan are set to review their monetary policies this week.

On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.05 per cent higher at Rs 48,186 per 10 grams at 0915 hours. The March Silver futures were trading 0.27 per cent higher at Rs 61,319 a kilogram.

On Friday, gold and silver prices settled on a positive note in the international markets. Gold February futures contract settled at $1,783.20 per troy ounce, and Silver March futures contract settled at $22.21 per troy ounce. Domestic markets also settled on a positive note.

Gold and silver showed extreme volatility on Friday and rebounded again after a record increase in US inflation.

Higher than expected consumer inflation in the United States pushed a dollar index lower and supported safe-haven buying once again in the gold and silver, suggest experts.

“We expect gold and silver prices to remain volatile this week ahead of the US Federal Reserve policy meeting and will give further directions to the bullion market. Gold is expected to hold $1850 per troy ounce and silver could hold $21.84 per troy ounce levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1768-1754, while resistance at $1800-1812 per troy ounce. Silver has support at $22.00-21.84, while resistance is at $22.55-22.80 per troy ounce.

“At MCX Gold has support at 48000-47850 and resistance at 48280-48500; silver has support at 60800-60300 and resistance at 61660-62100. We suggest buying gold around 48000 with a stop loss of 47780 for the target of 48400,” he said.

Technical Indicators:

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

COMEX gold trades marginally higher near $1787/oz after a 0.5% gain in the previous session. Gold has inched up as US inflation data has increased gold’s appeal as an inflation hedge.

Also supporting prices are geopolitical tensions and persisting virus concerns. However, the upside remains limited by expectations that the Fed may fasten the pace of bond tapering at its upcoming meeting. Firmness in equities has also kept a check on the gold price.

Gold may remain range-bound ahead of central bank meetings however prospect of monetary tightening may keep pressure on prices.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

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

Technically, the COMEX Gold February support zone is $1775.00-$1760.45 levels. The resistance zone is at $1794.00-$1802.65 levels.

Technically, the MCX Gold February resistance zone is at 48330- 48495 levels. The support zone is at 47930-47695 levels.
 
International spot silver prices have started with gains this Monday morning in Asian trade, tracking firm gold and slightly weaker U.S. Dollar.

Technically, the COMEX Silver March support zone is at $21.930-$21.660 levels. The resistance zone is at $22.350-$22.510 levels.

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

Technically, the MCX Silver March support zone is to 60560-59965 levels. The resistance zone is at 61510-61870 levels.

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

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

February Gold closing price 48164, Support 1 - 48000, Support 2 - 47800, Resistance 1 - 48400, Resistance 2 - 48600.

March Silver closing price 61151, Support 1 - 60600, Support 2 - 60000, Resistance 1 - 61700, Resistance 2 - 62100.

(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.)