Gold prices held steady on December 27 in the international markets above the key level of $1,800 per ounce, as slightly weaker US Treasury yields countered an uptick in the dollar.
On the Multi-Commodity Exchange (MCX), gold contracts were up 0.26 percent, trading at Rs 48,244 for 10 grams at 9.40am on December 27. Silver futures shed 0.13 percent to Rs 62,220 a kilogram.
Gold and silver prices settled on a positive note in the international markets on December 24. Gold February futures contract settled at $1,810.10 per troy ounce, up 0.01 percent and silver March futures contract settled at $22.91 per troy ounce, up 0.40 percent.
“We expect both the precious metals to remain volatile this week due to truncated trading in the international markets,” said Manoj Kumar Jain, Prithvi Finmart Commodity Research.
The yellow metal is expected to test $1,830 per troy ounce and silver could also test $23.50 per troy ounce. It has support at $1,800-1,788, while resistance is at $1,822-1,834 per troy ounce. Silver has support at $22.70-22.44, while resistance is at $23.10-23.40 per troy ounce. At MCX, gold has support at Rs 47,970-47,800 and resistance at Rs 48,330-48,500. Silver has support at Rs 61,900-61,500 and resistance at Rs 62,660-63,100.
“We suggest buying gold on dips around Rs 48,000 with a stop loss of Rs 47,780 for target of Rs 48,400 and silver around Rs 61,900 with a stop loss below Rs 61,500 for target of Rs 62,800,” he said.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX gold trades little changed near $1,810/oz after a 0.4 percent gain last week. Gold is stable as support from virus concerns, rising inflationary pressure and slowdown in China is countered by some recovery in the US dollar index and stable equities.
ETF flows also show weaker investor interest. Gold may remain choppy amid lack of fresh triggers and holiday impacted trade, however, we may not see a sustained rise unless price breaks past the $1,815/oz and as Fed’s monetary tightening expectations lends support to the US dollar.
Ravi Singh, Vice President & Head of Research, ShareIndia
Benchmark US Treasury yields edged down from their highest in more than a week touched in the previous session. Weaker yields pushed gold prices higher and fear of Omicron is supporting the prices at lower levels. The factors prevailing in the market are favourable for gold and it may touch Rs 49,000 levels in near terms.
Buy zone near -Rs 48,100 for the target of Rs 48,350
Sell zone below – Rs 48,000 for the target of Rs 47,800
Amit Khare, AVP- Research Commodities, Ganganagar Commodity
According to the technical chart, gold and silver look attractive on the daily chart; momentum indicator RSI is also indicating the same on the hourly as well as a daily chart. So, short-term investors are advised to create fresh longs on small dips near given support levels, traders should focus important technical levels.
February gold closing price Rs 48,119, Support 1 - Rs 48,000, Support 2 - Rs 47,900, Resistance 1 - Rs 48,260, Resistance 2 - Rs 48,500.
March silver closing price Rs 62,298, Support 1 - Rs 62,000, Support 2 - Rs 61,500, Resistance 1 - Rs 62,500, Resistance 2 - Rs 63,000.
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