Gold Price Today: Yellow metal trade flat; support seen at Rs 47660, say experts

India Gold MCX December futures trade flat on Wednesday following muted trend seen in the international spot prices amid strong U.S. dollar and elevated bond yields that dented bullion’s safe-haven appeal ahead of key central bank meetings.

On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.06 percent lower at Rs 47,782 per 10 grams at 0930 hours. Source: Reuters

India Gold MCX December futures trade flat on Wednesday following muted trend seen in the international spot prices amid strong U.S. dollar and elevated bond yields that dented bullion’s safe-haven appeal ahead of key central bank meetings.

The dollar also steadied close to a one-week high hit in the previous session, making gold less appealing for buyers holding other currencies, said a Reuters report. "Market participants now await Thursday’s Bank of Japan (BOJ) and European Central Bank (ECB) meetings," it said.

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.06 percent lower at Rs 47,782 per 10 grams at 0930 hours. The December silver futures were trading 0.08 percent higher at Rs 65,042 a kilogram.

Gold and silver plunged on Tuesday after upbeat U.S. economic data and a rebound in the dollar index. Both the precious metals settled on a weaker note in the international markets.

Gold December futures contract settled at $1793.40 per troy ounce, and silver December futures contract settled at $24.09 per troy ounce. Both the precious metals were also settled on a weaker note in the domestic markets.

The dollar index also rebounded from a three-week lows and U.S. equity markets also gained after upbeat corporate earnings. On the other hand, global inflation is still a big concern and could support prices at lower levels, suggest experts.

“We expect gold is expected to hold $1784 per troy ounce and silver is expected to hold $24 per troy ounce levels in today’s session. Gold has support at $1784-1772 per troy ounce and resistance at $1804-1818 per troy ounce; silver has support at $23.96-23.70 per troy ounce and resistance at $24.44-24.70 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

At MCX, Gold has support at 47660-47500 and resistance at 48055-48220; silver is having support at 64600-64220 and resistance at 65400-66100 levels.

“We suggest buying gold around 47660 with a stop loss of 47480 for the target of 48055 and silver around 64700 with a stop loss of 64200 for the target of 65700,” suggests Jain.

Technical Indicators:

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

COMEX gold trades marginally lower near $1790/oz after a 0.7% decline yesterday. Gold is pressurized by gains in the US dollar and continuing strength in equity markets.

However, supporting price is rising inflation concerns, rise in virus cases, worries about China’s property market, and renewed US-China tensions. A rise in China’s imports and ETF inflows also show a pick-up in buying interest.

Gold is struggling to sustain above $1800/oz level and may remain choppy unless there are fresh triggers however rising challenges to the global economy may keep a floor to prices.

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

Traders are advised to make fresh short positions in Gold and Silver in small bounces near given resistance levels. Traders should focus on important technical levels given below for the day:

December Gold closing price 47813, Support 1 - 47600, Support 2 - 47400, Resistance 1 - 48012, Resistance 2 - 48200.

December Silver closing price 64612, Support 1 - 64000, Support 2 - 63200, Resistance 1 - 65500, Resistance 2 - 65900.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices retreated on Tuesday snapping a five-session long streak of gains, as the dollar firmed, and strong company earnings bolstered appetite for riskier assets.

The stronger-than-expected move in equities, with a lot of earnings on deck, is taking a bit off gold this Tuesday.

Focus this week will be on major central bank meetings, including those of the Bank of Japan and the European Central Bank scheduled on Thursday.

The U.S. Federal Reserve's policy meeting is scheduled for next week.

Domestic gold prices could start weaker this Wednesday morning, tracking overseas prices.

Technically, MCX Gold December resistances are at 48201 and 48588. Supports are at 47505 and 47196.

International silver prices have started weaker this Wednesday morning in Asian trade tracking the strength of the U.S. Dollar.

Technically, COMEX Silver December resistances are at $24.520 and $24.953. Supports are at $23.790 and $23.493.

Domestic silver prices could start weaker this Wednesday morning, tracking overseas prices.

Technically, MCX Silver December resistances are at 65945 and 66902. Supports are at 64322 and 63656.

(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.)

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