Gold prices fell for a fourth consecutive session on January 31 in the international market and were set for their biggest monthly drop since last September, as the US dollar strengthened ahead of key central bank meetings, making bullion more expensive for holders of other currencies.
At the Multi-Commodity Exchange (MCX), gold contracts were trading marginally higher by 0.11 percent at Rs 47,665 for 10 grams at 9.30 am and silver shed 0.06 percent to trade at Rs 61,000 a kilogram.
The near-term trend in gold and silver may remain weak as investors jitter at the hawkish Fed outlook. The strong dollar and rising bond yield put selling pressure on precious metals. Gold has resistance at Rs 48000 while support is at Rs 47200. Selling pressure is likely to be seen in gold near resistance levels. Support of Rs 47200 will be crucial if this level is breached, then selling momentum may increase and prices may head for Rs 46700 levels, said Abhishek Chauhan, head of commodity and currency at Swastika Investmart.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher near $1788/oz after a sharp 2.6% decline last week. Gold trades marginally higher on the back of safe haven buying amid mixed US and Chinese economic data and increased geopolitical tensions relating to North Korea and Russia. However, weighing on price is expectations of aggressive rate hikes by Fed. ETF investors have also moved to the sidelines after Fed meeting. Gold remains below $1800/oz level reflecting bearish sentiment. However, mixed factors may keep prices in a range ahead of central bank meetings this week.
Vidit Garg, Director, MyGoldKart
Gold is all set for one of the worst price closings after the Fed signalled a more aggressive stance and pushed the dollar higher. Moving forward all eyes will be on payroll data coming this week. Technically, on daily charts gold is in a bearish state but further weakness is only expected below $1777 and, on the contrary, if prices sustain above $1803 then we may witness bulls coming back in the picture.
Technically, for intraday if prices sustain above $1790 then we may witness $1798 and $1800 kind of levels.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver on January 28 settled on a weaker note in international markets. The gold February futures contract settled at $1,790.10 per troy ounce, down by 0.17%, and silver March futures contract settled at $22.49 per troy ounce, down by 0.84%. Hotter than expected inflation and geo-political tensions between Ukraine and Russia could support precious metals prices at lower levels. Gold could hold $1778 and silver prices could hold $22 per troy ounce levels this week. Gold has support at $1778-1766, while resistance at $1800-1818 per troy ounce. Silver has support at $22.20-21.84, while resistance is at $22.88-23.10 per troy ounce.
At MCX, gold has support at Rs 47400-47220 and resistance at Rs 47770-47950 and silver has support at Rs 60660-60300 and resistance at Rs 61700-62220. We suggest buying gold April futures contract around Rs 47440 with a stop loss of Rs 47220 for a target of Rs 47800 and silver around Rs 60700 with a stop loss of Rs 60200 for a target of Rs 61700.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.