Gold Price Today: Yellow metal trades flat; buy on dips for target of 48150: Experts

India Gold MCX February futures trades flat on Tuesday, following muted trend seen in the international spot prices that was trading flat amid firm US dollar.

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The US Treasury yields weighed on its yellow metal appeal and confined it to a tight $4 range, said a Reuters report. A stronger dollar raises gold’s costs to buyers holding other currencies, while higher yields increase bullion’s opportunity cost, it said.

On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.08 per cent lower at Rs 47,875 per 10 grams at 0915 hours. The March silver futures were trading 0.11 per cent lower at Rs 61,202 a kilogram.

Gold and silver plunged amid strength in the dollar index and rebound in the US bond yields on Monday. Both the precious metals settled on a weaker note in the international markets.

Gold February futures contract settled at $1779.50 per troy ounce and silver March futures contract settled at $22.26 per troy ounce. Due to weakness in the rupee both the precious metals were settled on a mixed note in the domestic markets.

Gold and silver prices edged lower on Monday amid strength in the dollar index and rebound in the benchmark 10-year bond yields in the United States, suggest experts.

The dollar index is hovering above 96 marks and bond yields also crossed 1.40% marks again on Monday.

“We expect both the precious metals to remain volatile in today’s session and could hold key support levels of $1750 per troy ounce and $22 per troy ounce respectively,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1762-1750 per troy ounce and resistance at $1794-1810 per troy ounce; silver has support at $22.00-21.84 per troy ounce and resistance at $22.55-22.80 per troy ounce.

“At MCX, gold has support at 47770-47580 and resistance at 48155-48330; silver is having support at 60800-60500 and resistance at 61700-62100,” he said. Jain suggests buying in gold on dips around 47700 with a stop loss of 47550 for the target of 48150.

Technical Indicators:

Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited

As per the technical chart, Gold and Silver both are trading at oversold zone. Momentum indicator i.e., RSI is also indicating the same in the hourly as well as on the 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 47914, Support 1 - 47750, Support 2 - 47500, Resistance 1 - 48055, Resistance 2 - 48200.

March Silver closing price 61270, Support 1 - 60600, Support 2 - 60000, Resistance 1 - 62000, Resistance 2 - 63000.

(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.)