Gold share price today 14-05-2021: Expert says BUY at around Rs 47330 for target price of Rs 47700

Gold share price today 14-05-2021: Prithvi Commodity says that Gold and silver have shown extreme volatility on Thursday after Wednesday’s fall. The dollar index and benchmark 10-year bond yields gained after an unexpected rise in inflation in the United States and triggered profit taking in both precious metals. Both the precious metals were settled on a mixed note on Thursday. Gold June futures contracts were settled at $1824 per troy ounce with a gain of 0.07% and silver July futures contracts were settled at $27.06 per troy ounce with a loss of 0.66%. However, both the precious metals were settled on a weaker note in the domestic markets. Gold June futures contracts were settled at 47438 per 10 gram with a loss of 0.09% and silver July futures contracts were settled at 70473 per one kilogram with a loss of 0.91%. Gold and silver prices recovered from their early losses on Thursday. Both the precious metals opened with a gap down after Thursday’s inflation shock and strong gains in the dollar index and bond yields.

The dollar index gained more than 1% in two sessions and bond yield again tested 1.70%. However, gold and silver prices find support at lower levels again amid short covering and bargain buying at lower levels. The unemployment claims in the United States also fell to 4,73,000 levels last week and restrict gains in both precious metals. U.S. producer price index report for April came in at up 0.6% from March, which was double the 0.3% rise that was forecast. The April CPI was up over 6%, year-on-year. The PPI report followed a hot consumer price index report issued on Wednesday and having evidence that continues to build the U.S. economy. Rising inflation will support precious metal prices in the longer term as it is the best hedge against inflation, highlights Prithvi Commodities.

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Prithvi Commodities expects both the precious metals to remain volatile in today’s session (Friday) and show some recovery from lower levels. Gold is having support at $1810-1798 per troy ounce and resistance at $1838-1850 per troy ounce; silver is having support at $26.70-26.40 per troy ounce and resistance at $27.40-27.88 per troy ounce. At MCX, gold is having support at 47200-47050 and resistance at Rs 47700 – Rs 47880; silver is having support at Rs 70000 – Rs 69500 and resistance at Rs 70900 – Rs 71400 levels. 

Prithvi Commodity suggests buying in gold around Rs 47330 with a stop-loss of Rs 47050 for the target of Rs 47700 and in silver around 70000 with a stop loss of Rs 69400 for the target of Rs 71400 levels.