Gold Price Today: Yellow metal trades higher; buy Silver for a target of Rs 62,500: Experts

India Gold MCX February futures trade higher on Tuesday, following positive trend seen in the international spot prices amid curbs to contain the spread of the Omicron coronavirus cases.

Spot gold rose to $1,806.20 per ounce, after slipping from a more than one-month high of $1,831.62 in the previous session, said a Reuters report.

On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.16 per cent higher at Rs 47,790 per 10 grams at 09:20 hours. The March Silver futures were trading 0.13 per cent lower at Rs 61,659 a kilogram.

Gold and silver plunged again in the first trading session of 2022 amid strength in the dollar index and U.S. bond yields. Both the precious metals settled on a weaker note in the international markets.

Gold February futures contract settled at $1800.10 per troy ounce, and silver March futures contract settled at $22.81 per troy ounce. Both the precious metals also settled on a weaker note in the domestic markets.

Gold and silver prices hit hard on Monday after a strong rally in the dollar index and U.S. benchmark 10-year bond yields. The dollar index crossed 96 marks again and the U.S. benchmark bond yield gained more than 7% pushing both the precious metals lower.

“Higher inflation is still a big worry for global economies despite monetary tightening by major global central banks in 2022. Rapidly rising coronavirus cases in many countries could also stall global economic growth in the first quarter of 2022 and could support precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect gold and silver could hold its support levels of $1784 per troy ounce and $22 per troy ounce respectively. Gold has support at $1784-1772 per troy ounce and resistance at $1818-1832 per troy ounce; silver has support at $22.55-22.20 per troy ounce and resistance at $23.10-23.40 per troy ounce,” he said.

At MCX, Gold has support at 47550-47400 and resistance at 47880-48055; silver has support at 61440-61100 and resistance at 62000-62500.

“We suggest buying gold around 47660 with a stop loss of 47440 for the target of 48000 and silver around 61500 with a stop loss of 60900 for the target of 62500,” added Jain.

Technical Recommendations:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start with gains this early Tuesday morning, tracking the overseas prices.

Technically, if MCX Gold February trades above the 47,850 level it could continue its bullish momentum up to 48,285-48,440 levels. The resistance zone is at 47560-47405 levels.

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

Technically, if COMEX March trades above $22.980 levels, it could continue its bullish momentum up to $23.270-$23.730 levels. The support zone is at $22.520-$22.230 levels.

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

Technically, if MCX Silver March trades above 61955 levels, it could continue its bullish momentum up to 62425-63105. The support zone is at 61270-60805.

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

COMEX gold trades marginally higher near $1805/oz after a sharp 1.6% decline yesterday. Gold fell sharply after failing to sustain above $1830/oz level. Gold came under pressure as bond yields and the US dollar index edged up as market players shifted focus to Fed’s monetary policy stance ahead of FOMC minutes and jobs report.

Gold has come off the highs but is still near the key $1800/oz level and we may see volatility continuing reflecting larger market however rise in yields and US dollar may weigh on prices.

(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.)