Gold Price Today: Yellow metal trades flat; buy on dips for target of Rs 49055: Experts

India Gold MCX December futures trade flat but with a positive bias tracking steady trend seen in the international spot prices.

Spot gold was little changed at $1,845.48 per ounce. The dollar index fell 0.1%, retreating from Friday's high. A weaker dollar reduces bullion's 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 0.1 per cent lower at Rs 48,779 per 10 grams at 0930 hours. The December silver futures were trading 0.02 per cent higher at Rs 65,571 a kilogram.

On Friday, the gold and silver prices were settled on a weaker note in the international markets. Gold December futures contract settled at $1,847.05 per troy ounce, and silver December futures contract settled at $24.65 per troy ounce. Domestic markets were also settled on a weaker note.

Gold and silver plunged again on Friday after strength in the dollar index and fear of raising interest rates by the US Federal Reserve sooner than expected.

The dollar index crossed the 96 marks again and hit fresh 16-month highs amid safe-haven demand due to rising covid-19 cases in China and the European Union.

Gold prices plunge from five-month highs and slipped below $1850 per troy ounce; silver prices also slipped below $25 per troy ounce once again. However, record global inflation and surge in the Covid-19 cases are supported precious metal prices at lower levels, said a Reuters report.

“We expect both the precious metals to remain volatile this week and gold is expected to hold its crucial support of $1820 per troy ounce and silver could also hold $24 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1834-1822, while resistance at $1858-1872 per troy ounce. Silver has support at $24.40-24.20, while resistance is at $24.88-25.10 per troy ounce.

“At MCX, Gold has support at 48660-48500 and resistance at 49055-49280; silver is having support at 65220-64700 and resistance at 66000-66600. We suggest buying gold on dips around 48600 with a stop loss of 48330 for the target of 49055,” he said.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start flat this Monday morning, tracking a flat start in overseas prices.

Technically, if MCX Gold December sustains below 48900, it could witness a bearish momentum up to 48700-48500 levels. The resistance zone is at 49000-49200 levels.

International silver prices have started flat this Monday morning in Asian trade.

Technically, if LBMA Silver trades below $25.00 levels, it could witness sideways to marginal downside momentum up to $24.20-$23.70 levels. Support is at $25.20-$26.20 levels.

Domestic silver prices could start flat this Monday morning, tracking a flat start in overseas prices.

Technically, if MCX Silver December trades below 65700 levels, it could witness a bearish momentum up to the support zone at 64900-64200 levels. The resistance zone is at 66100-67000 levels.

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

Traders are advised to create fresh longs in small dips near given support levels, traders should focus important technical levels given below for the day:

December Gold closing price 48828, Support 1 - 48650, Support 2 - 48450, Resistance 1 - 49000, Resistance 2 - 49200.

December Silver closing price 65556, Support 1 - 65000, Support 2 - 64500, Resistance 1 - 66100, Resistance 2 - 66850.

(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.)