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Gold Prices Today: Selling pressure likely at higher levels, support around Rs 48,800

Gold has corrected after failing to sustain above $1850/oz and a drop below $1800/oz has further dented market sentiment however we may not see a sustained decline amid weaker risk sentiment, said Ravindra Rao at Kotak Securities

January 28, 2022 / 10:08 AM IST
Gold market stays volatile

Gold market stays volatile

Gold traded flat in the international markets on January 28 and was set for its sharpest weekly decline since November as markets digested the US Federal Reserve's policy tightening plans that propelled the dollar index to a multi-month peak.

At the Multi-Commodity Exchange (MCX), gold contracts were trading marginally higher by 0.3 percent at Rs 47,922 for 10 grams at 9.25 am and silver added 0.17 percent to tarde at Rs 62,048 a kilogram.

Gold fell 1.75 percent on the previous day as Fed signalled a rate hike as soon as March. The metal extended losses after data showed that the US economy expanded at an annual 6.9 percent pace in the fourth quarter. The dollar which moves against gold prices soared 0.75 percent and crossed the 97 mark. Silver prices also fell by more than 3 percent.

The yellow metal has resistance at Rs 48,150 and a rise in prices towards resistance levels may witness selling pressure. It has support at Rs 48,800, said Abhishek Chauhan, Head of Commodity and Currency at Swastika Investmart.

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

COMEX gold trades marginally higher near $1,797/oz after a sharp 2 percent decline on Thursday. Gold edged up as the US dollar index paused after a rally to July 2020 highs. Also supporting price is increased geopolitical tensions, rising inflationary pressure and choppiness in equities. However, weighing on price are expectations of faster and aggressive rate hikes by the Fed and strong US growth data. The metal has corrected after failing to sustain above $1,850/oz and a drop below $1,800/oz has further dented market sentiment, however, we may not see a sustained decline amid weaker risk sentiment.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver crashed on Thursday in the international markets after hawkish Fed statements and strength in the dollar index. Both the precious metals were settled on a weaker note in the international markets. We expect both the precious metals to find support at lower levels in today’s session. Gold has support at $1,784-1,778 per troy ounce and resistance at $1,800-1,818 per troy ounce, while silver has support at $22.40-22.20 per troy ounce and resistance at $22.88-23.20 per troy ounce.

At MCX, gold has support at Rs 47,700-47,550 and resistance at Rs 48,100-48,330, while silver has support at Rs 61,600-61,200 and resistance at Rs 62,300-62,700. We suggest buying silver around Rs 61,600 with a stop loss of Rs 61,200 on a closing basis for target of Rs 62,500.

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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Sandip Das
first published: Jan 28, 2022 10:08 am
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