Gold Prices Today: Volatile trading on the cards, finds crucial support at Rs 47,850

Volatility continued to rule the yellow metal on Friday morning. Gold opened on a positive note in the Indian markets but soon began showing a volatile trade.

On the Multi-Commodity Exchange (MCX), gold opened 0.1 percent up at Rs 48,185 per 10 gram, while silver lost 0.05 percent to Rs 62,320 a kilogram. By 9.45am, gold was down to Rs 48,156, up 0.01 percent from Thursday’s close, while silver was down 0.04 percent at Rs 62,285.

The precious metals closed on a mixed note in the domestic markets on December 23 amid strength in the rupee. In the international markets, however, both gold and silver ended on a positive note after a volatile session as the dollar index weakened further.

“Downbeat US economic data supported gold and silver prices in the international markets. However, gains in the US benchmark 10-year bond yields capped gains,” said Manoj Kumar Jain, Prithvi Finmart Commodity Research.

On MCX, February gold futures contract settled at Rs 48,152, losing 0.10 percent after opening at Rs 48,268. March silver futures contract opened at Rs 62,273 and gained 0.20 percent to settle at Rs 62,311.

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Trading strategy 

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Both the precious metals were settled on a positive note in the international markets. Gold February futures contract were settled at $1,809.85 per troy ounce with a gain of 0.42 percent and silver March futures contract were settled at $22.82 per troy ounce with a gain of 0.001 percent.

In the domestic markets, February gold futures contract were settled at Rs 48,152, with a loss of 0.10 percent and March silver futures contract were settled at Rs 62,311, with a gain of 0.20 percent.

Gold prices remained above $1,800 per troy ounce on Thursday, amid weakness in the dollar index and hotter than expected US personal consumption expenditures (PCE) data.

On a monthly basis, the US core PCE price index was up 0.5 percent last month, against consensus forecasts for a 0.4 percent rise. On an annual basis, core PCE jumped 4.7 percent, up from last month’s reading at 4.2 percent.

The US unemployment claims also rose last week to 2,05,000 against economists’ forecast for 2,00,000 claims. Personal income and personal spending data also shows decline as compared to previous month data.

Gold prices are holding above $1,800 per troy ounce and silver is also holding above $22.55 per troy ounce. We expect both the precious metals to remain volatile and continue to hold their support levels. Gold is having support at $1,800-1,788 and resistance at $1,822-1,834 per troy ounce; silver is having support at $22.55-22.30 per troy ounce and resistance at $23.10-23.40 per troy ounce.

At MCX, gold is having support at Rs 48,000-47,850 and resistance at Rs 48,330-48,580. Silver, on the other hand, has support at Rs 61,900-61,660 and resistance at Rs 62,700-63,100. We suggest buying silver around Rs 62,000 with a stop-loss below Rs 61,500 on a closing basis for the targets of Rs 63,000.

Dr Ravi Singh, Vice-President & Head of Research, ShareIndia

Backed by strong inflows during wedding, festive season and fresh concern over Omicron have increased the volatility in gold prices. However, the dollar moves are keeping a check, keeping the trade range-bound.

Buy Zone Near – Rs 48,100 for the target of Rs 48,400;

Sell Zone Below – Rs 47,800 for the target of Rs 47,600

Abhishek Chauhan, Head of Commodity & Currency, Swastika Investmart

Prices of precious metals may remain range-bound due to the US market holiday in observation of Christmas day. However, gold prices may find support at Rs 48,000, while mild selling pressure can be seen near Rs 48,300. Silver has support at Rs 61,600 and the day trend looks range-bound to the upside where prices may test Rs 62,800 levels.

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

COMEX gold gained 0.5 percent yesterday, building on the gains noted earlier in the session and has moved above the key $1800/oz level. Gold has edged up in the last few sessions amid correction in the US dollar index.

The US dollar index ended little changed yesterday as support from higher bond yields was countered by mixed US economic data and reduced safe haven demand. US economic data released yesterday painted a mixed picture as durable goods orders rose at a faster pace while consumer sentiment improved, however, weekly jobless claims were steady while new home sales saw a slower growth and personal income and spending slowed.

Gold has gained in the last few sessions and holds above $1800/oz. It is, however, yet to break past the recent highs of $1815/oz. We do not expect a sustained rise in US dollar as stability in equity markets may reduce its safe haven appeal while Fed’s tightening outlook may keep a floor to US dollar.