Gold was trading higher in the Indian market on February 3 even as international prices remained unchanged above the key $1,800 an ounce level after US Treasury yields retreated following a dip in the jobs data.
At the Multi-Commodity Exchange (MCX), gold contracts were trading 0.37 percent higher at Rs 48,099 for 10 grams at 9.53 am and silver shed 0.07 percent to trade at Rs 61,289 a kilogram.
Gold bounced on February 2 as dollar and yields dropped after ADP data showed that approximately 3 lakh private jobs dropped. The metal also got supported from President Joe Biden’s decision to send troops to Eastern Europe over a Russian threat to invade Ukraine.
“Technically, we got stop in our first trade as gold bounced from $1,793 but buy above $1,804.50 proved to be profitable one,” said Vidit Garg, Director, MyGoldKart.
For the day, resistance zone is around $1,810 and $1,812. If the metal crosses the level, it may climb to $1,817, else $1,800 is expected on the down side, Garg said.
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Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart
Weakness in the dollar, which moves opposite to gold prices, is likely to be seen on February 3, as it breached 96 level that supports gold to accelerate buying momentum.
US ADP non-farm employment change data stood weak, favouring precious metals. On MCX, gold is likely to test Rs 48,400. It has support at Rs 47,800.
Manoj Kumar Jain of Prithvi Finmart Commodity Research
Gold and silver showed moderate gains on February 2 amid weakness in the dollar index and rising tensions in Eastern Europe.
Both metals settled on a positive note in the international markets. Weakness in the dollar, downbeat US economic data and situation in Eastern Europe supported the metals. Higher than expected European consumer inflation data also supported the metals.
We expect both precious metals to remain volatile on February 3 ahead of the Bank of England and the European Central Bank policy meetings but expect to hold its support levels.
Gold has support at $1,800-1,788 and resistance at $1,822-1,824, while silver has support at $22.40-22.20 and resistance at $23.00-23.20.
On MCX, gold has support at Rs 47,920-47,770 and resistance at Rs 48,300-48,550, while silver has support at Rs 61,100-60,660 and resistance at Rs 61,800-62,220.
We suggest buying gold on dips around Rs 47,950 with a stop loss of Rs 47,770 for the target of Rs 48300.
Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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