Gold prices traded lower in early trade in the domestic futures market on September 16 but the losses were capped as the US dollar softened against its global peers.
Investors appear to be cautious and are restricting their moves in order to get clear cues on the US Fed's rate hike trajectory.
While softer inflation prints have boosted hopes that the Fed may decide to leave the stimulus exercise intact for a longer time, investors await to see how things pan out after the Federal Open Market Committee's two-day policy meeting next week.
In the previous session, gold prices slipped in the global markets after upbeat US empire state manufacturing index data.
"We expect both the precious metals to remain volatile in today’s session ahead of the US unemployment claims data and could hold its support levels," said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.
On MCX, October gold was trading 0.14 percent lower at Rs 46,830 per 10 gram at 0940 hours but December Silver was 0.19 percent up at Rs 63,415 per kg.
"On MCX, gold has a price range of Rs 47,500-46,700. However, it has tested the area of lower price range where prices are trading sideways. Prices of silver are supported due to strength in base metals. We are expecting sideways movement in gold and silver," said Abhishek Chauhan, Head Commodity and Currency at Swastika Investmart.
Technical indicators
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Gold price is supported by weakness in the US dollar, concerns about the health of the Chinese economy, geopolitical tensions and persisting virus risks.
However, weighing on price is weaker investor interest, stability in equity markets and continuing debate about Fed's monetary tightening.
Gold may remain choppy near $1,800/oz as market players remain non-committal ahead of the Fed meeting next week, however, challenges for the global economy may keep prices supported.
Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research
Gold is having support at $1,784-1,772 per troy ounce and resistance at $1,804-1,818 per troy ounce; silver is having support at $23.55-23.20 per troy ounce and resistance at $24.14-24.50 per troy ounce.
On the MCX, gold is having support at Rs 46,750-46,600 and resistance at Rs 47,050-47,220; silver is having support at Rs 62,900-62,500 and resistance at Rs 63,700-64,100 levels.
We suggest buying gold on dips around Rs 46,800 with a stop loss of Rs 46,580 for the target of Rs 47,200.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
On September 15, we witnessed small profit-booking in bullion at higher levels. But, technical charts are showing strength in gold and silver.
Momentum indicator RSI is also indicating the same, so traders are advised to create fresh buy positions in gold and silver in small dips near below-given support levels:
October Gold Support 1: Rs 46,800 | Support 2: Rs 46,600 | Resistance 1: Rs 47,130 | Resistance 2: Rs 47,450.
December Silver Support 1: Rs 62,900 | Support 2: Rs 62,400 | Resistance 1: Rs 63,650 | Resistance 2: Rs 64,100.
Sandeep Matta, Founder, TRADEIT Investment Advisor
The risk of a steep fall in the precious metal is unlikely currently due to the slowdown in inflation in the US. The outlook for today is sideways while we may see a slight recovery in the prices.
Key level for gold: Rs 46,900
Buy zone: Above Rs 46,900 for the target of Rs 46,975-47,200
Sell zone: Below Rs 47,900 for the target of Rs 46,813-46,700
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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