Gold Price Today: Yellow metal trades lower; buy for a target of Rs 46300, say experts

India Gold MCX October futures were trading lower on Friday despite the positive trend seen in the international spot prices. Experts recommended investors to 'buy the dip' for a target of Rs 46,300, and suggested that a stop loss can be placed below Rs 45,650.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.15 percent lower at Rs 45,987 per 10 grams at 0930 hours. September silver futures were trading 0.3 percent lower at Rs 60,599 a kilogram.

Gold and silver prices plunged on Thursday after record gains in the global equities and benchmark 10-year bond yields in the United States. Both the precious metals were settled on a weaker note in the international markets.

Gold December futures contract settled at $1749.80 per troy ounce, and silver December futures contract settled at $22.68 per troy ounce. Both the precious metals were also settled on a weaker note in the domestic markets.

“Global equities rose after the Chinese government infused extra liquidity into the banking system to handle the Evergrande debt crisis. Improving risk appetite also triggered selling in safe-haven metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect both the precious metals could find support at lower levels once again in today’s session. Gold has support at $1740-1728 per troy ounce and resistance at $1762-1774 per troy ounce; silver has support at $22.40-22.20 per troy ounce and resistance at $22.88-23.20 per troy ounce,” he said.

At MCX, gold has support at 45800-45550 and resistance at 46300-46580; silver has support at 60300-59800 and resistance at 61100-61800 levels. “We suggest buying gold around 45880 with a stop loss of 45650 for the target of 46300,” says Jain.

Technical Recommendations:

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

COMEX gold trades little changed near $1749/oz after a sharp 1.6% decline yesterday. Weighing on gold price is firmness in equity markets, weaker investor interest and Fed’s projection of early rate hikes.

However, supporting price are global growth worries amid disappointing economic data and concerns about the Chinese economy.

Gold's sharp fall has dented market sentiment however a sustained decline is unlikely as economic data and rising raw material price reflect increasing challenges to the global economy.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold spot and futures tumbled on Thursday pressured by an uptick in treasury yields and an appetite for riskier assets, as investors continued to position themselves for a sooner-than-expected interest rate hike from the U.S. Federal Reserve.

International silver spot and futures also ended in the red on Thursday, tracking weak gold prices. Domestic markets also witnessed weakness with both gold and silver futures ending in the red on Thursday.

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Technically, MCX Gold October could see sideways to marginal downside momentum up to 45900-45700 levels. Resistance is at 46200-46350 levels.

MCX Silver December could test the supports at 60000-59300 levels. Resistance is at 62000-63200 levels. Bullion Index futures on MCX could start with small gains on Friday morning trade.

Technically, MCXBULLDEX could trade on Bearish note within the range of 13550-13800 levels.

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

Traders are advised to create fresh long positions in Gold and Silver, traders should focus on important technical levels given below for the day:

October Gold closing price 46056, Support 1 - 45890, Support 2 - 45700, Resistance 1 - 46400, Resistance 2 - 46800.

December Silver closing price 60789, Support 1 - 60300, Support 2 - 59800, Resistance 1 - 61200, Resistance 2 - 61790.

Expert: Sandeep Matta, Founder TRADEIT Investment Advisor

The precious metal witnessed a deep cut in prices amid the increasing interest of market participants in global equity markets.

Equity markets are flying high after the FOMC commentary which set the table for future tapering of its bond-buying program and an increase in its interest rates in the Year 2022.

Gold prices are unable to sustain despite the looming inflation threat in the economy and maybe losing the safe-haven status for the near term.

Gold on MCX is also trading negative and bears have the overall technical advantage. The outlook for the precious metals is negative and markets participants will be better off in finding shorting opportunities.   

Key level for GOLD – 46117

Buy Zone Above – 46125 for the target of 46275-46345

Sell Zone Below – 46110 for the target of 45900-45722

(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.)