Gold price today: Yellow metal holds above Rs 49,000; can buy on dip with target at Rs 49,600

India Gold MCX February futures hold above Rs 49,000 per 10 gm despite a muted start tracking weak trend in the international spot prices. March Silver futures also started on a muted note.


Gold price today: Yellow metal holds above Rs 49,000; can buy on dip with target at Rs 49,600

© Kshitij Anand Gold price today: Yellow metal holds above Rs 49,000; can buy on dip with target at Rs 49,600

On the Multi-Commodity Exchange (MCX), February gold contracts were trading lower by 0.47 percent at Rs 49,093 per 10 gram at 09:20 hours. March silver was trading 0.47 percent lower at Rs 63,433 per kilogram.

Experts are of the view that investors could use dips towards Rs 49,000 to buy for a target of Rs 49,600 and a stop loss can be kept around Rs 48,700.

Gold and silver prices showed range bound moves last week amid uncertainty over U.S. stimulus and recovery in the dollar index from their lows. Gold February futures contract were settled at $1843.70 per troy ounce and silver March futures contract were settled at $24.08 per troy ounce.

Both the precious metals were also traded range-bound in the domestic markets last week and settled on a mixed note.

Gold and silver showed a steady move last week ahead of the U.S. Federal Reserve policy meeting on Wednesday and uncertainty over U.S. stimulus.

“Market is awaiting Federal Reserve economic projections and comments on the economy. U.S. inflation and PPI data released last week were in line with expectations. We expect gold and silver prices will show extreme volatility this week and expected to hold the key support of $1800 per troy ounce and $23 per troy ounce respectively,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“At MCX, Gold has a support at Rs48,987–48,649, while resistance is placed at Rs49,550–49,775 and silver has support at Rs62,978-62,222, while resistance is at Rs64,213–64,692,” he said.

Jain suggests investors buy the dip in gold around 49000 levels with the strict stop loss around 48700 for the target of 49600 and in silver around 63000 with the strict stop loss around 61800 for the target of 64800 levels.

Trading strategy

Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold and silver ended higher on Friday, tracking overseas prices.

Gold and silver’s latest gains came despite a stronger greenback, with the dollar index headed for its first weekly gain in four weeks. Markets will now look to cues from the Fed meeting this week ending Wednesday.

Domestic bullion could start flat to marginally lower tracking the international prices.

Technically, MCX Gold February holds a resistance near its 21-Daily Moving Average which is at 49450 levels below which will continue its downside momentum. Support is at 49000-48800 levels. Resistance holds at 49400-49650 levels.

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MCX Silver March has bounced back from 62700 levels where it is expected to consolidate within the 62000-64400 range where a breakout above 64500 will continue its bullish rally.

However, below 63000 levels could see some sideways to marginal downside momentum up to 62300-61000 levels.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

COMEX gold trades marginally lower near $1839/oz after a 0.3% gain in the previous session. Weighing on the gold price is progress on the vaccine front, continuing ETF outflows and delay in US fiscal stimulus deal.

However, supporting price is rising virus cases, Brexit uncertainty, US-China tensions, and loose monetary policy stance of major central banks.

Gold may witness choppy trade amid mixed cues however general bias may be on the downside unless there is pick-up in ETF buying or more clarity on US stimulus.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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