Gold Price Today: Yellow metal trades higher; buy on dips for a target of Rs 48400: Experts

India Gold MCX December futures trade higher on Monday tracking positive trend seen in the international spot prices as concerns over the impact of the possibly vaccine-resistant Omicron coronavirus variant supported the precious metal’s safe-haven appeal.

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The Omicron coronavirus variant spread around the world on Sunday, with new cases found in the Netherlands, Denmark and Australia even as more countries have imposed travel restrictions to try to seal themselves off, said a Reuters report.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.37 per cent higher at Rs 47,760 per 10 grams at 0930 hours. The December silver futures were trading 1.09 per cent higher at Rs 62,720 a kilogram.

On Friday, gold and silver prices settled on a mixed note in the international markets. Gold December futures contract settled at $1,791.40 per troy ounce, and silver December futures contract settled at $23.145 per troy ounce. Domestic markets also settled on a mixed note.

Gold and silver prices showed very high prices volatility last week amid concerns of a new virus. New South African variant of coronavirus creates fear in global financial markets.

Global equity markets plunged on Friday and supported the safe-haven buying of gold. The dollar index and benchmark 10-year bond yield also dip and supported gold prices, suggest experts.

“A new strain of Covid-19 that is rapidly spreading in southern Africa has produced high anxiety among traders and investors. We expect gold prices could show further strength in the upcoming week amid concerns of new virus and pressure in global equity markets,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1778-1762, while resistance at $1800-1822 per troy ounce. Silver has support at $23.00-22.55, while resistance is at $23.40-23.84 per troy ounce.

“At MCX, Gold has support at 47720-47500 and resistance at 48280-48600; silver has support at 62,500-61,900 and resistance at 63,600-64,200. We suggest buying gold around 47800 with a stop loss of 47480 for the target of 48400,” he said.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start with gains this Monday morning, tracking a positive start in overseas prices.

Technically, if MCX Gold February trades above 47800 level, it will continue its negative trend up to 48100-48300 levels. Resistance is at 47850-47000 levels.

International spot silver prices have started with gains this Monday morning in Asian trade, supported by safe haven appeal for the metal.

Technically, if LBMA Silver trade above $23.00 level, it could witness a bullish momentum up to $24.00-$24.55 levels. Support is at $ $22.90-$22.30 levels.

Domestic silver prices could start with gains this Monday morning, tracking a firm start in overseas prices.

Technically, if MCX Silver March trades above 63000 level, it could witness a bullish momentum up to 64000-64300 levels. Support is at 62200-61700 levels.

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.