Gold Prices Today: Yellow metal to hold support of Rs 51,700 amid volatility; buy on dips

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Gold prices eased on Monday in international markets as the dollar and Treasury yields firmed on prospects of aggressive interest rate hikes by the US Federal Reserve, while fresh concerns over Russia's attacks in eastern Ukraine lent some support to the safe-haven metal.

On the Multi-Commodity Exchange (MCX), gold contracts were up 0.15 percent, trading at Rs 52,151 for 10 grams at 9.42 am, while silver was up 0.22 percent at Rs 67,142 a kilogram.

COMEX gold trades marginally lower near $1942/oz after a 0.4 percent gain in the previous session. Gold is pressured by firmer dollar and higher bond yields as Fed officials express support for faster monetary tightening to get inflation under control. However, supporting gold are concerns about the Chinese economy amid rising virus cases and disappointing economic data, continuing Russia-Ukraine fighting and persisting inflation. ETF investors moved to sidelines awaiting fresh triggers. Gold has been stuck in a range and this may continue unless there are fresh triggers; however, with persisting geopolitical risks, prices may remain supported, says Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.

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Gold as a safe haven is attractive due to soaring inflation and uncertainty in the Russian-Ukraine war. As long as the two factors continue to dominate markets, a scenario for a further uptrend in gold price remains intact. It is a good opportunity to go long on every dips.

Buy zone above Rs 52200 for target of Rs 52500

Sell zone below Rs 51800 for target of Rs 51600

Gold and silver prices were not trading far from unchanged in early US action on Friday. Metal traders are watching the key outside markets, which are calmer to end the trading week. June gold futures were last up $0.30 at $1,938.50 and May Comex silver was last up $0.05 at $24.79 an ounce.

As per technical chart, gold and silver prices are showing some short covering, momentum indicator RSI is also indicating the same on the hourly as well as daily chart. So traders are advised to create fresh buy positions near given support levels --  they should focus on important technical levels.

June Gold closing price Rs 52071, Support 1 - Rs 51900, Support 2 - Rs 51700, Resistance 1 - Rs 52200, Resistance 2 - Rs 52400.

May Silver closing price Rs 66992, Support 1 - Rs 66600, Support 2 - Rs 66200, Resistance 1 - Rs 67400, Resistance 2 - Rs 68000.

Gold and silver on April 8 settled on a positive note in international markets. Gold June futures contract settled at $1,948.40 per troy ounce, up 0.55 percent and silver May futures contract settled at $24.91 per troy ounce, up 0.70 percent. Domestic markets also settled on a positive note. We expect gold and silver prices to remain volatile this week and continue to hold their key support levels of $1900 and $24 per troy ounce respectively. Gold has support at $1934-1922 while resistance is at $1958-1970 per troy ounce. Silver has support at $24.70-24.40 while resistance is at $25.20-25.55 per troy ounce.

At MCX, gold has support at Rs 51880-51700 and resistance at Rs 52280-52500 while silver has support at Rs 66660-66200 and resistance at Rs 67400-67880. We suggest buying gold on dips around Rs 51900 with a stop loss of Rs 51660 for target of Rs 52400 and silver around Rs 66600 with a stop loss of Rs 66200 for target of Rs 67700.