India Gold MCX December futures were trading flat-to-lower on Friday tracking muted trend seen in the international spot prices, which were trading lower as the dollar rebounded and made the metal expensive for holders of other currencies.

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The dollar recouped most of those losses on Friday and began the final quarter of 2021 at close to its highest level of the year, said a Reuters report.

On the Multi-Commodity Exchange (MCX), December gold contracts were trading 0.11 percent lower at Rs 46,470 per 10 grams at 0930 hours. December silver futures were trading 0.19 percent lower at Rs 59,502 a kilogram.

International Gold and silver prices rebounded on Thursday on good corrective rebounds after the yellow metal hit a six-week low and silver a 14-month low on Tuesday.

Short-covering by the shorter-term futures traders was seen on Thursday as well as some bargain hunting after the recent dip, say experts.

“COMEX gold trades marginally lower near $1755/oz after a sharp 2% gain on Thursday. Gold remains pressurized by firmer US dollar, Fed’s monetary tightening expectations and weaker investor interest,” Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said.

“However, supporting price is global growth worries amid mixed economic data, rising inflation concerns amid higher inflationary pressure and increasing concerns about the Chinese economy,” he said.

Rao further added that weakness in equities has also increased gold’s appeal as an alternative asset. Gold has bounced back from lows however a sustained rise is difficult with the US dollar still holding on to its gain.

Technical Indicators –

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

We saw a strong short-covering rally in Gold and Silver which may continue for the next 2-3 trading sessions. Both metals are trading at the oversold zone for the last 4-5 trading sessions.

Traders are advised to create fresh long positions in Gold and Silver in small dips near given support, traders should focus on important technical levels given below for the day:

December Gold closing price 46521, Support 1 - 46200, Support 2 - 45950, Resistance 1 - 46800, Resistance 2 - 47100.

December Silver closing price 59617, Support 1 - 59100, Support 2 - 58700, Resistance 1 - 60100, Resistance 2 - 60600.

Expert: Dr. Ravi Singh, Vice President & Head of Research at ShareIndia

Gold closed on a positive note witnessing some relief rally due to short covering or profit booking. However, the expectation of stimulus tightening by US Fed will be keeping a check on fresh buying.

Buy Zone Above - 46600for the target of 47100
Sell Zone Below - 46200with the target of 45800.

(Disclaimer: The views/suggestions/advices 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.)