Gold Price Today: Yellow metal trades higher; buy on dips for target of 46,220, say experts

India Gold MCX October futures trade higher on Monday following a positive trend seen in international spot prices amid rising concerns over the fate of debt-laden property giant China Evergrande.

The possible impact of China Evergrande fallout bolstered the precious metal’s safe-haven appeal, said a Reuters report. Evergrande missed a payment on offshore bonds last week, with further payment due this week.

“Physical gold demand in China which is also one of the top consumers of the yellow metal rose last week as buyers sought cover from the potential fallout of the Evergrande crisis,” added the Reuters report.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.32 percent higher at Rs 46,141 per 10 grams at 0930 hours. September silver futures were trading 1 percent higher at Rs 60,562 a kilogram.

On Friday, gold and silver prices settled on a mixed note in the international markets. Gold December futures contract settled at $1,750.40 per troy ounce, and silver December futures contract were settled at $22.42 per troy ounce. Domestic markets were settled on a weaker note.

Gold and silver prices crashed last week after the U.S. Federal Reserve gave a signal for raising interest rates from 2022 and started tapering by the end of this year.

Reacting to the news, the dollar index reached one-month highs and benchmark 10-year bond yield crossed 1.45% levels again.

“The Chinese government also pumped extra liquidity into the banking system to handle Evergrande debt crisis. Gold is trading at its make-or-break support level of $1750 per troy ounce and if it holds then it could rebound again, on the breakdown below $1750 could bring prices down to $1720-1700 levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect precious metal prices could find support at lower levels this week. At MCX, Gold has support at 45800-45660 and resistance at 46240-46400; silver has support at 59400-59100 and resistance at 60600-611100 levels,” he said.

Jain suggests buying Gold on dips around 45800 with a stop loss of 45580 for the target of 46220.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold silver spot & COMEX futures ended marginally higher on Friday as investors avoided riskier assets because of China's Evergrande problems.

International silver spot & COMEX futures ended in the red. Domestic gold and silver prices ended weaker on Friday.

Domestic gold prices could trade flat-to-marginally higher this Monday morning, tracking overseas prices.

Technically, MCX Gold December above 46000 could see an upside momentum up to 46300-46700 levels. Support is at 45800-45700 levels.

International silver prices have started flat to marginally higher this Monday morning in Asian trade.

Technically, LBMA Silver above $22.50 level could see sideways to marginal upside momentum up to $22.80-$23.30 levels. Support is at $22.30-$22.00 levels.

Domestic silver prices could start flat to marginally higher this Monday morning, tracking overseas prices.

Technically, MCX Silver December above 60000 levels could see 60900-61800 levels. Support is at 59300-58700 levels.

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

COMEX gold trades modestly higher near $1758/oz after a 0.1% gain in previous session. Gold has benefitted from persisting worries about the Chinese economy amid concerns about debt default by the Evergrande Group and increasing regulatory crackdown measures.

Choppiness in the US dollar has also lent some support. However, weighing on price is Fed’s monetary tightening expectations and mixed ETF flows which show lack of investor confidence.

Gold has managed to hold above $1740/oz level and with increasing challenges for the Chinese market, prices may remain supported.

(Disclaimer: The views/suggestions/advices 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.)