Gold Price Today: Yellow metal trades flat; support seen at Rs 47850, say experts

India Gold MCX December futures was trading flat on Tuesday following muted trend seen in the international spot prices as a weak dollar offset firm U.S. bond yields.

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The precious metal hit its highest since September 7 on Monday as the dollar softened and major central banks signaled inflation would likely fade and immediate interest rate hikes were not required, said a Reuters report.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.01 per cent higher at Rs 48,021 per 10 grams at 0930 hours. The December silver futures were trading 0.12 per cent lower at Rs 64,805 a kilogram.

Gold and silver extended its gain on Monday. Both precious metals settled on a positive note in the international markets. Gold December futures contract settled at $1828 per troy ounce and silver December futures contract settled at $24.54 per troy ounce.

Despite strength in the rupee both the precious metals also settled on a positive note in the domestic markets.

“Major global central banks are concerned about rising global inflation due to higher energy prices and expectations that the transitory inflation could last a little longer. We expect both the precious metals to remain positive and gold prices could test $1850 per troy ounce and silver prices could also test $25 per troy ounce in the upcoming sessions,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“Any decline in the prices would be a buying opportunity in both the precious metals. Gold has support at $1818-1804 per troy ounce and resistance at $1836-1850 per troy ounce. At MCX, gold has support at 47850-47700 and resistance at 48180-48400,” he said.

Silver has support at 64550-64200 and resistance at 65100-65500. Jain suggests buying gold on dips around 47800 with a stop loss of 47620 for the target of 48200.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold & silver prices ended higher on Monday, bolstered by a retreat in the dollar and persistent inflation concerns after key central banks indicated interest rates would remain low in the near term.

Investors will look to cues from the CPI inflation data this week. The U.S. consumer inflation data could help traders judge the risks posed by price pressures.  

Domestic gold prices could start with cuts this Tuesday morning, tracking firm overseas prices.

Technically, if MCX Gold December trades above 48000 it could test the resistance zones at 48190-48361 levels. Support zones is 47831-47643 levels.

International silver prices have started marginally weak this Tuesday morning in Asian trade.

Technically, if COMEX Silver December trades above $24.420 levels, it could witness a upside momentum up to the resistance zones at $24.711-$24.881 levels. Support zones is at $24.251-$23.961 levels.

Domestic silver prices could start weak this Tuesday morning, tracking weak overseas prices.

Technically, if MCX Silver December trades below 64739 it could test the resistance zones at 65180-65480 levels. Support zones is at 64439-63998 levels.

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

Traders are advised to make fresh buy positions in Gold and Silver in small dips, traders should focus important technical levels given below for the day:

December Gold closing price 48018, Support 1 - 47800, Support 2 - 47600, Resistance 1 - 48225, Resistance 2 - 48400.

December Silver closing price 64881, Support 1 - 64400, Support 2 - 63700, Resistance 1 - 65300, Resistance 2 - 66000.

(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.)