Gold Price Today: Yellow metal trades higher, resistance seen near Rs 49300, say experts

India Gold MCX December futures traded higher on Thursday despite muted trend seen in the international spot prices.

Spot gold was little changed at $1,850.00 per ounce, after hitting its highest since June 15 on Wednesday or a 5-month peak, said a Reuters report. Gold is often viewed as a hedge against rising price levels.

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.23 per cent higher at Rs 48,965 per 10 grams at 0930 hours.

Gold and silver skyrocketed on Wednesday after upbeat U.S. inflation data. Both precious metals settled on a positive note in the international markets.

Gold December futures contract were settled at $1848.30 per troy ounce, and silver December futures contract settled at $24.77 per troy ounce. Both the precious metals settled on a positive note in the domestic markets.

Gold and silver prices showed real power after the U.S. inflation beat economist forecasts. Higher than expected rise in CPI and core CPI triggered safe-haven buying once again in both the precious metals, suggest experts.

“Despite strength in the dollar index and bond yields both the precious metals showed strong gains. We expect gold and silver prices to remain firm in the upcoming sessions and gold could test $1878 and silver could test $25.20 per troy ounce levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1832-1818 per troy ounce and resistance at $1862-1878 per troy ounce; silver has support at $24.50-24.30 per troy ounce and resistance at $25.00-25.20 per troy ounce.

“At MCX, Gold has support at 48660-48480 and resistance at 49100-49300; silver has support at 65220-64800 and resistance at 66300-66700 levels,” he said.

Jain suggests buying gold on dips around 48700 with a stop loss of 48440 for the target of 49200 and silver around 65400 with a stop loss of 64700 for the target of 66600.
 
Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold & silver prices ended higher on Wednesday, as data showed U.S. consumer prices surged last month, burnishing bullion's appeal as an inflation hedge. Investors will look to cues from the CPI inflation data this week.

Consumer inflation data on Wednesday showed U.S. prices were rising at a 6.2% year-over-year rate, which could prompt the U.S Federal Reserve into action.

However, a spike in the U.S. Dollar and strengthening bond yields kept upside limited in bullion.

International gold prices have started marginally in the red this Thursday morning in Asian trade tracking the strength of the greenback.

Technically, if COMEX Gold December trades above $1847.30 levels, it could witness a upside momentum up to the resistance zones at $1871.60-$1894.90 levels. Support zones is at $1824.00-$1799.70 levels.

Domestic gold prices could start with small cuts this Thursday morning, tracking a weak start in overseas prices.

Technically, if MCX Gold December trades above 48770 it could test the resistance zones at 49367-49879 levels. Support zones is 48255-48000 levels.

International silver prices have started marginally weak this Thursday morning in Asian trade.

Technically, if COMEX Silver December trades above $24.680 levels, it could witness an upside momentum up to the resistance zones at $25.315-$25.857 levels. Support zones is at $24.135-$23.497 levels.

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

Technically, if MCX Silver December trades above 65640 it could test the resistance zones at 67022-68166 levels. Support zones is at 64492-63106 levels.

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

Traders are advised to book their longs and should wait for fresh buying in good correction, and should focus important technical levels given below for the day:

December Gold closing price 48854, Support 1 - 48500, Support 2 - 48200, Resistance 1 - 49160, Resistance 2 - 49500.

December Silver closing price 65878, Support 1 - 65200, Support 2 - 64400, Resistance 1 - 66600, Resistance 2 - 67270.

(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.)