Gold Price Today: Yellow metal trades flat; support seen at Rs 47660: Experts

India Gold MCX February futures trade flat on Wednesday, following muted trend seen in the international spot prices after the US Federal Reserve Chair Jerome Powell said the central bank would discuss ending its bond purchases sooner.

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Spot gold rose 0.1% to $1,775.85 per ounce by 0211 GMT, only $2 shy of Tuesday's last recorded price which was the lowest since November 4, said a Reuters report.

On the Multi-Commodity Exchange (MCX), the February 2022 gold contracts were trading 0.01 per cent lower at Rs 47,804 per 10 grams at 0930 hours. The March silver futures were trading 0.13 per cent higher at Rs 62,370 a kilogram.

Gold and silver showed roller coaster moves on Tuesday. Both the precious metals settled on a weaker note in the international markets.

Gold February futures contract settled at $1776.50 per troy ounce and silver March futures contract were settled at $22.815 per troy ounce. Both the precious metals settled on a weaker note in the domestic markets.

Gold and silver gained in the early trading session on Tuesday amid fear of mutation on a new variant of coronavirus and Moderna said that vaccine efficacy is less on the new variant of the virus.

Both precious metals were also supported by disappointing US consumer confidence data but prices slipped again in the late evening session after the US Federal Reserve Chairman testifies.

The US Federal Reserve Chairman suggested that the central bank might speed up tapering of its monthly asset purchases when it meets this month.

“We expect precious metal prices to remain volatile amid volatility in the dollar index, fear of new variants of virus and higher global inflation. Gold is expected to hold its important support of $1752 per troy ounce and silver is also expected to hold $22.55 per troy ounce levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1764-1752 per troy ounce and resistance at $1788-1800 per troy ounce; silver has support at $22.55-22.20 per troy ounce and resistance at $23.10-23.45 per troy ounce.

“At MCX, gold is having support at 47660-47480 and resistance at 48055-48280; silver is having support at 61900-61500 and resistance at 62700-63300 levels,” he said.

Jain suggests buying gold around 47700 with a stop loss of 47480 for the target of 48150.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start flat this Wednesday morning.

Technically, if MCX Gold February trades below the 47990 level, it could continue its negative trend up to 47480-47150 levels. The resistance zone is at 48316-48826 levels.

International spot silver prices have started flat to marginally weaker this Wednesday morning in Asian trade.

Technically, if COMEX Silver March trades below the $22.960 level, it could witness a bearish momentum up to $22.560-$22.310 levels. The resistance zone is at $23.210-$23.610 levels.

Domestic silver prices could start flat to marginally weaker this Wednesday morning, tracking a negative start in the overseas prices.

Technically, if MCX Silver March trades below the 62600 level, it could witness a bullish momentum up to 61777-61266 levels. The resistance zone is at 63109-63930 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.)