India Gold MCX February futures trade higher on Tuesday tracking positive trend seen in the international spot prices, which were trading above $1800 per ounce.

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Analysts have said gold trading is likely to remain thin and range-bound this week, said a Reuters report. Benchmark US Treasury yields and the dollar index steadied on Tuesday.

On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.21 per cent higher at Rs 48,168 per 10 grams at 09:20 hours. The March Silver futures were trading 0.04 per cent higher at Rs 62,320 a kilogram.

Gold and silver showed mixed trends on Monday in the international markets. Both the precious metals settled on a mixed note in the international markets.

Gold February future contract settled at $1808.80 per troy ounce, while Silver March futures contract settled at $22.99 per troy ounce. Both the precious metals settled on a mixed note in the domestic markets.

Gold and silver fell in the early trading session on Monday, but they found supports at lower levels once again. Gold prices are holding $1800 per troy ounce levels in the international markets amid inflation and Omicron worries.

Geopolitical tensions between Russia and Ukraine are also supporting safe-haven buying in gold. Silver prices gained in the international markets and tested $23 per troy ounce levels, said experts.

“Santa rally in the U.S. equity markets and strength in base metals supported silver prices. We expect gold prices to remain steady in today’s session but silver could show further strength amid strength in base metals and could test $23.55 per troy ounce levels again,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“Gold has support at $1800-1788 per troy ounce and resistance at $1818-1832 per troy ounce; silver has support at $22.80-22.55 per troy ounce and resistance at $23.30-23.55 per troy ounce,” he said.

At MCX, Gold has support at 47980-47770 and resistance at 48220-48380; silver has support at 61900-61500 and resistance at 62,700-63,100. Jain suggests buying silver on dips around 62000 with a stop loss of 61500 on a closing basis for the target of 63,000.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start flat this early Tuesday morning tracking the overseas prices.

Technically, the MCX Gold February range for the day is from 47900-48330.

International spot silver prices have started flat this early Tuesday morning in Asian trade.

Technically, the LBMA Silver support zone is at $22.90-$22.65 levels. The resistance zone is at $23.24-$23.75 levels.

Domestic silver prices could start flat early Tuesday morning tracking the overseas prices.

Technically, the MCX Silver March resistance zone is at 62500-62950 levels. The support zone is at 62000-61500 levels.

Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades in a narrow range near $1810/oz after yesterday’s 0.2% decline. Gold continues to trade in a range near $1800/oz reflecting the stability in US dollar and bond yields amid a lack of fresh triggers.

Support from virus concerns, Chinese economic slowdown and rising inflationary pressure is countered by strength in equities and weaker investor interest.

Gold may remain range-bound as it is set to end a lackluster year on a subdued note however any gains in the US dollar may make it vulnerable to a correction.

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

As per the technical chart, Gold and Silver are both looking attractive on the daily chart. Momentum indicator RSI is also indicating the same in hourly as well as the daily chart.

Short term investors are advised to create fresh longs on small dips near given support levels, and traders should focus on important technical levels given below for the day:

February Gold closing price 48066, Support 1 - 47900, Support 2 - 47800, Resistance 1 - 48200, Resistance 2 - 48400.

March Silver closing price 62301, Support 1 - 61700, Support 2 - 61500, Resistance 1 - 63000, Resistance 2 - 63500.

(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.)