Gold price today: Yellow metal trades flat, experts say buy on dips for a target of Rs 47,700

Gold was trading flat but with a positive bias in the Indian market on April 19, tracking positive trends in international Spot prices.  On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.07 percent at Rs 47,385 for 10 grams at 0935 hours. May silver futures were trading 0.63 percent lower at Rs 68,250 a kilogram.

International gold prices were hovering near a seven-week peak hit in the previous session, as a weaker dollar and lower US treasury yields supported prices, a Reuters report said.

On April 16, gold and silver prices settled on a positive note in the international markets. June gold futures contract settled at $1,776.90 a troy ounce and May silver contract settled at $26.03 per troy ounce. Domestic markets, too, ended on a positive note.

The rise in consumer inflation in the United States, higher Federal Reserve budget deficit and accommodative stance of the Fed also supported safe-haven buying in the precious metals, experts said.

“Fresh sanctions on Russia by the United States also increased political risk and supported safe-haven buying in the precious metals last week. We expect both the precious metals to remain volatile and continue to find support at lower levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.

“Any decline in the prices would be buying opportunity in both the precious metals. At MCX, gold has support at 4,7100-46,920 and resistance at 47,550-47,800; silver is having support at 68,100-67,700 and resistance at 69,100-70,000,” he said.

Jain suggests buying in gold around Rs 47,150 with a stop loss of Rs 46,920 for the target of Rs 47,700 and in silver around Rs 68,200 with a stop loss of Rs 67,500 for the target of Rs 69,500.

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

Comex gold was trading marginally lower near $1,776 after a 0.8 percent gain in the previous session. Gold weakened as the US dollar index steadied after recent fall.

Also weighing on price is general progress on the vaccination front and optimism about the US and Chinese economy and continuing ETF outflows.

However, supporting price is the loose monetary policy stance of major central banks and rising virus concerns.

Gold has rallied sharply in the last few days and stability in the US dollar has made it vulnerable to some profit-taking however the general trend is still positive.

Sriram Iyer, Senior Research Analyst, Reliance Securities

International gold and silver prices rose on April 16, supported by the Fed’s plan to keep interest rates historically low.

Domestic gold and silver ended higher, tracking the overseas prices. The reasons for bullion’s strength were a sharp retreat in US treasury yields and a softer dollar.

Domestic gold and silver prices could trade mixed on April 19, tracking overseas prices.

Technically, MCX June gold support is at Rs 46,150 and Rs 46,000. Resistance is at Rs 47,500 and Rs 47,700.

Technically, MCX Silver has sustained above the pivotal support level at Rs 68,500 and now could witness a bullish rally up to Rs 69,500. A further trade above the level could push prices to Rs 70,600.

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