Gold price in the international market beat a hasty retreat as investors latched on to seemingly hawkish remarks from the US Federal Reserve chair, erasing gains from more than a one percent rally fuelled by concerns over the Omicron coronavirus variant.
On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.09 percent to Rs 47,650 for 10 grams at 9.47 am on December 1. Silver futures were also up 0.13 percent to Rs 61,725 a kilogram.
"Gold and silver showed roller coaster moves on Tuesday. Both the precious metals settled on a weaker note in the international markets. We expect precious metal prices to remain volatile amid wild movements in the dollar index, fear of new virus variants and higher global inflation. Gold is expected to hold its important support of $1,752 per troy ounce and silver is also expected to hold $22.55 per troy ounce levels. Gold has support at $1,764-1,752 per troy ounce and resistance at $1788-1800 per troy ounce while silver has support at $22.55-22.20 per troy ounce and resistance at $23.10-23.45 per troy ounce, said Manoj Kumar Jain, Prithvi Finmart Commodity Research.
"At MCX, gold has support at Rs 47,660-47,480 and resistance at Rs 48,055-48,280 while silver has support at Rs 61,900-61,500 and resistance at Rs 62,700-63,300 levels. We suggest buying gold around Rs 47,700 with a stop loss at Rs 47,480 for target of Rs 48,150," he added.
Ravi Singh, Vice President & Head of Research at ShareIndia
The new variant is creating an atmosphere of uncertainty in the global market due to the possible consequences on the economic activities. Most of the developed economies are facing high inflation and slow recovery. Gold prices in this scenario will find support as US may prefer to delay the tapering decision for the time being.
Sell zone below - Rs 47,600 for target of Rs 47,300
Amit Khare, AVP- Research Commodities, Ganganagar Commodity
Gold and silver prices showed negative movement on the November 30, on MCX, February gold contracts closed down by 0.39% at Rs 47,805 for 10 grams. while March contract silver futures closed at Rs 62,287 a kilogram, down 0.14%. We are seeing huge volatility booking in Bullions and this may continue for the month of December. The current levels are the best prices for short term investors. As per technical chart, overall structure of gold and silver are looking positive, momentum indicator RSI is also indicating the same on hourly chart and trading at oversold zone. So short term investors are advised to create fresh longs on small dips near given support levels, traders should focus important technical levels.
February Gold closing price Rs 47805, Support 1 - Rs 47550, Support 2 - Rs 47300, Resistance 1 - Rs 48050, Resistance 2 - Rs 48270.
March Silver closing price Rs 62287, Support 1 - Rs 62000, Support 2 - Rs 61500, Resistance 1 - Rs 63000, Resistance 2 - Rs 64000.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.