Gold Prices Today: Yellow metal likely to remain weak, traders can buy on dips

Gold Prices, Silver Prices

Gold prices edged up on November 23 but hovered close to their lowest level in more than two weeks, hit in the previous session, as the dollar gained on US President Joe Biden's nomination of Federal Reserve Chair Jerome Powell for a second term.

On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.09 percent to Rs 47,968 for 10 grams at 9.20 am on November 22. Silver futures gained 0.14 percent to Rs 64,660 a kilogram.

Gold and silver prices saw a knee-jerk reaction after the US President nominated Jerome Powell as the US Federal Reserve Chairman for a second term. Both the precious metals settled on a weaker note in the international markets. We expect both the precious metals to remain volatile and could find support at lower levels. Gold has support at $1796-1782 per troy ounce and resistance at $1818-1832 per troy ounce, while silver has support at $24.00-23.84 per troy ounce and resistance at $24.55-24.80 per troy ounce, said Manoj Kumar Jain, Prithvi Finmart Commodity Research.

At MCX, gold has support at Rs 47700-47550 and resistance at Rs 48100-48330 while silver has support at Rs 64200-63900 and resistance at Rs 64900-65200. We suggest buying in gold at Rs 47850 with a stop loss of Rs 47600 on a daily closing basis for target of Rs 48300, he added.Track Live Gold prices here

Trading Strategy

Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart

Gold breached the $1850 support level and fell around 1.6 percent yesterday due to a stronger dollar index and rising bond yield. The dollar index gained 0.35 percent while the US bond yield rose to 1.59 percent. Silver also remained down but prices were supportive due to stronger industrial metal prices. On MCX, gold has support at Rs 48000 and resistance at Rs 48500. Selling pressure is expected in precious metals if prices rise towards resistance levels.

Manoj Dalmia, Founder and Director- Proficient Equities

There was a significantly big sell-off in gold on Monday. However, prices are still quoting above the important moving averages of 100 and 50-days, and the intermediate trend still remains up for gold. The September high of Rs 47550 was an important resistance for gold and the current uptrend was set into motion with this resistance getting breached in early November. This erstwhile resistance is now expected to provide support for gold.

Ravi Singh, Vice President & Head of Research at ShareIndia

Gold fell nearly 2 percent yesterday as the dollar jumped after Federal Reserve Chair Jerome Powell was nominated for a second term, driving expectations that the Central Bank may stay the course on tapering economic support. After this news, the US treasury yields surged as traders are perceiving that a more dovish policy may pave it's way. We expect this weakness may continue till Rs 47500.

Buy zone above - Rs 48250 for target of Rs 48500
Sell zone below - Rs 47850 for target of Rs 47500

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

As per technical charts, overall structure of gold and silver are looking positive; momentum indicator RSI is also indicating the same on the hourly chart and trading at oversold zone. So traders are advised to create fresh longs on small dips near given support levels. Traders should focus important technical levels.

December gold closing price Rs 47923, Support 1 - Rs 47650, Support 2 - Rs 47350, Resistance 1 - Rs 48200, Resistance 2 - Rs 48470.

December silver closing price Rs 64571, Support 1 - Rs 64000, Support 2 - Rs 63600, Resistance 1 - Rs 65020, Resistance 2 - Rs 65500

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