India Gold MCX December futures trade higher on Thursday following positive trend seen in the international spot prices on the soft dollar that made the metal cheaper for buyers holding other currencies.

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Bullion prices have traded between $1,759 and $1,788 this week. A weaker dollar on Thursday kept the metal close to the higher end of this range, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.44 percent higher at Rs 47,488 per 10 grams at 0930 hours. The December silver futures were trading 0.43 percent higher at Rs 65,886 a kilogram.

Gold and silver extended gains on Wednesday amid weakness in the dollar index. Both the precious metals settled on a positive note in the international markets.

Gold December futures contract settled at $1784.90 per troy ounce, and silver December futures contract settled at $24.69 per troy ounce. Despite strength in the rupee, both the precious metals were also settled on a positive note in the domestic markets.

The dollar index slipped to a 3-week low on Wednesday and supported both the precious metals. Consumer inflation in the Euro-zone rose in the month of September due to higher energy prices, suggest experts.

“Weakness in the dollar index and global inflation concerns are pushing gold and silver prices up in the international markets. Global inflation could rise in the coming months due to higher energy and metal prices and continue to support precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect both the precious metals to remain volatile in Thursday’s session ahead of the U.S. unemployment claims data and gold prices could test $1800 per troy ounce levels once again in the international markets,” he said.

At MCX, Gold has support at 47240-47055 and resistance at 47660-47850 while Silver has support at 65220-64700 and resistance at 66100-66660 levels. Jain suggests buying gold around 47350 with a stop loss of 47180 for the target of 47770.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold & silver prices rose on Wednesday after the U.S. dollar weakened, as worries over rising inflation and supply chain issues boosted the safe-haven appeal.

However, a rise in U.S. Treasury yields capped the upside in gold. Domestic gold & silver also rose on Wednesday, tracking overseas prices.

Domestic silver prices could start with gains this Thursday morning, tracking overseas prices.

Technically, MCX Silver December resistances are at 65900 and 66200. Supports are at 64700 and 64000.

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

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

December Gold closing price 47499, Support 1 - 47300, Support 2 - 47000, Resistance 1 - 47675, Resistance 2 - 47900.

December Silver closing price 65607, Support 1 - 65200, Support 2 - 64800, Resistance 1 - 66000, Resistance 2 - 66600.

(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.)