Gold prices on January 13 in the international markets held near a one-week high in the previous session, as the US dollar and Treasury yields retreated after inflation data came in line with expectations bolstering the case for a quicker interest rate hike by the US Federal Bank.
On the Multi-Commodity Exchange (MCX), gold contracts were up 0.06 percent at Rs 47,838 for 10 gram at 9.47am. Silver futures added 0.07 percent to Rs 61,898 a kilogram.
Precious metals advanced as US Core CPI data rose to 0.6% compared to 0.5% in the previous month. The dollar index fell down 0.56% and bond yields registered losses in the previous session. US equity market also retreated due to higher CPI data which is attracting investors towards safe heaven assets again. On MCX, gold has resistance at Rs 47850 and support at Rs 47500, said Abhishek Chauhan, head of commodity & currency at Swastika Investmart.
Trading Strategy
Manoj Kumar Jain of Prithvi Finmart Commodity Research
Gold and silver extended its gain on Wednesday after weakness in the dollar index. Both the precious metals settled on a positive note in the international markets. We expect both the precious metals to remain volatile in today’s session ahead of the US unemployment claims data and continue to hold their support levels. Gold has support at $1814-1800 per troy ounce and resistance at $1838-1850 per troy ounce while silver has support at $23.00-22.70 per troy ounce and resistance at $23.55-23.70 per troy ounce.
At MCX, gold has support at Rs 47,660-47,500 and resistance at Rs 47,950-48,100 while silver has support at Rs 61,500-61,100 and resistance at Rs 62,200-62,600. We suggest buying gold on dips around Rs 47,660 with a stop loss of Rs 47480 for target of Rs 48000 and silver around Rs 61500 with a stop loss of Rs 60900 for a target of Rs 62600.
Vidit Garg, Director, MyGoldKart
Fundamentally gold seems to be well placed as balance sheet shrinking by Fed has been shifted to end of year and hedge against inflation may continue to support the prices.
Technically, yesterday gold traded above its major moving averages and was well supported around $1815, for the day support is seen at $1814 and $1808 while resistance at $1830 and $1834. As per charts, we may see some dips today but overall gold and silver have turned buy on dips bets.
Ravi Singh, Vice President & Head of Research at ShareIndia
In the current juncture, momentum indicators like MACD, RSI and MAs are showing a bullish trend on the intraday and daily chart. The trend may continue and gain its strength on a breakout above Rs 48000 levels.
Buy zone above Rs 48000 for target of Rs 48500
Sell zone below Rs 47600 for target of Rs 47400
Amit Khare, AVP- Research Commodities, Ganganagar Commodity
As per daily technical chart, gold and silver are looking strong. Momentum indicator RSI is also indicating the same on the the hourly as well as daily chart. So traders are advised to create fresh buy positions near given support levels; traders should focus on important technical levels.
February Gold closing price Rs 47808, Support 1 - Rs 47650, Support 2 - Rs 47500, Resistance 1 - Rs 47950, Resistance 2 - Rs 48100.
March Silver closing price Rs 61856, Support 1 - Rs 61300, Support 2 - Rs 60800, Resistance 1 - Rs 62350, Resistance 2 - Rs 63000.
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