Gold Price Today: Yellow metal trades higher; buy on dips for target of 48,800: Experts

India Gold MCX February futures trade higher on Friday tracking positive trend seen in the international spot prices as the dollar weakened after the US Federal Reserve decided to withdraw its pandemic-era stimulus.

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The dollar index remained under pressure after hitting a one-week low in the previous session, making greenback-priced bullion cheaper for holders of other currencies, said a Reuters report. The benchmark 10-year yield dropped 3.8 per cent so far in the week.

On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.29 per cent higher at Rs 48,785 per 10 grams at 0915 hours. The March Silver futures were trading 0.12 per cent lower at Rs 62,074 a kilogram.

Gold and silver gained amid weakness in the dollar index and rising unemployment claims in the United States. Both the precious metals settled on a positive note in the international markets.

Gold February futures contract settled at $1798.20 per troy ounce, and silver March futures contract settled at $22.49 per troy ounce. Both the precious metals settled on a positive note in the domestic markets.

Gold and silver rebounded again on Thursday amid profit-taking in the dollar index after the Federal Open Market Committee (FOMC) left interest rates unchanged in its policy meeting and the Bank of England raised interest rates by 15 basis points.

“Downbeat US unemployment claims and industrial production data also supported precious metals. Gold and silver also gained amid rising coronavirus cases in the UK and other countries and strength in crude oil prices. We expect both the precious metals to remain firm and gold prices could cross $1800 per troy ounce levels in today’s session,”  Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1784-1772 per troy ounce and resistance at $1810-1822 per troy ounce; silver has support at $22.20-21.84 per troy ounce and resistance at $22.80-23.10 per troy ounce.

“At MCX, Gold has support at 48400-48180 and resistance at 48800-49050; silver has support at 61660-61220 and resistance at 62660-63300,” he said.

Jain suggests buying gold on dips around 48400 with a stop loss of 48180 for the target of 48800 and silver around 61600 with a stop loss of 60900 for the target of 63000.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start higher this Friday, tracking a positive start in the overseas prices.

Technically, MCX Gold February resistance zone is at 48790-48935 levels. Support zone is at 48390-48130 levels.

International spot silver prices have started with small gains this early Friday morning in Asian trade, tracking the weakness of the Greenback.

Technically, COMEX Silver March support zone is at $22.720-$22.955 levels. Resistance zone is at $22.090-21.695 levels.

Domestic silver prices could start with gains this Friday morning, tracking a positive start in the overseas prices.

Technically, MCX Silver March support zone is to 60910-59670 levels. Resistance zone is at 62835-63515 levels.

Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited

As per the technical chart Gold and Silver, both are looking attractive on the daily chart. Momentum indicator RSI also indicates the same in hourly as well as on 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 48646, Support 1 - 48400, Support 2 - 48200, Resistance 1 - 48800, Resistance 2 - 49000.

March Silver closing price 62151, Support 1 - 61500, Support 2 - 61000, Resistance 1 - 62700, Resistance 2 - 63230.

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

COMEX gold trades marginally higher near $1800/oz after a sharp 1.9% gain yesterday. Gold witnessed a sharp rebound from 2-month as US dollar index and bond yields weakened in reaction to Fed decision, mixed economic data and hawkish stance of other central banks.

The increasing emphasis on controlling inflation has also increased gold’s appeal as an inflation hedge. ETF flows however show lack of investor interest. Gold has rallied sharply and break above $1800/oz shows upward momentum however the gains may be limited amid hawkish stance of Fed and major central banks.

(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).