Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Gold Prices Today: Yellow metal to edge higher, experts suggest buy on dips

Gold has eased back after failing to break past the $1850/oz level and some extended correction cannot be ruled out amid positioning ahead of Fed meeting next week, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.

January 21, 2022 / 10:27 AM IST

Gold prices were muted on January 21 in the international markets and were on course for a second consecutive weekly gain as investors turned to safe-haven assets while awaiting signals on interest rate hikes from the US Federal Reserve's meeting next week.

On the Multi-Commodity Exchange (MCX), gold contracts were trading marginally down 0.05 percent to Rs 48,484 for 10 grams at 9.21 am and silver futures slipped 0.35 percent to Rs 65,150 a kilogram.

Gold and silver showed high volatility on Thursday amid volatility in the dollar index. Both the precious metals settled on a mixed note in the international markets. Gold February futures contract were settled at $1842.60 per troy ounce with a loss of 0.03% and silver March futures contract were settled at $24.72 per troy ounce with a gain of 2.01%. We expect gold and silver prices to remain positive and any corrective dip would be good buying opportunity at lower levels. Gold has support at $1830-1814 per troy ounce and resistance at $1855-1870 per troy ounce while silver has support at $24.40-24.20 per troy ounce and resistance at $25.00-25.20 per troy ounce, said Manoj Kumar Jain, Prithvi Finmart Commodity Research.

At MCX, gold has support at Rs 48220-48055 and resistance at Rs 48550-48770 while silver has support at Rs 64900-64500 and resistance at Rs 65800-66200. We suggest buying gold on dips around Rs 48250 with a stop loss of Rs 48055 for target of Rs 48700, he added.

Track Live Gold Prices Here

Close

Trading Strategy

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

COMEX gold trades marginally lower near $1839/oz after a near flat close yesterday when it tested 2-month high. Gold paused as US dollar index bounced back after a brief correction gaining support from expectations that Fed may tighten monetary policy at a faster pace. However, supporting price is retreat in bond yields from recent highs, inflationary concerns, geopolitical tensions and virus concerns. Gold has eased back after failing to break past the $1850/oz level and some extended correction cannot be ruled out amid positioning ahead of Fed meeting next week.

Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart

Rising unemployment claims data from US-supported gold and silver prices. The dollar which mover the opposite to gold prices, fell 0.10% in the previous trading session while the bond yield rose marginally. Crude oil prices advanced around 0.80% indicating a further rise in inflation. Gold has resistance at Rs 48700 and support at Rs 48300. Silver has resistance at Rs 65500 and support at Rs 64400.

Vidit Garg, Director, MyGoldKart

Gold and silver touched two-month highs on Thursday, lifted by worries surrounding inflation and Russia-Ukraine tensions also falling equities supported the metal market as hedge against risk buying emerged. Technically, RSI is entering overbought zone on daily charts above 70 and a fall below 60 may bring correction else it may push upside, traders can short metal today below $1834 for target of $1820.

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.​



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Sandip Das
first published: Jan 21, 2022 10:27 am
Sections
ISO 27001 - BSI Assurance Mark