Gold price today: Yellow metal edges higher on softer dollar; use dips to buy

Representative image

India Gold February futures rose on January 2 as the dollar remained on the back foot on signs of progress in trade ties between the United States and China.

The dollar started the New Year under pressure as investors wagered US economic outperformance could be coming to an end as optimism on trade brightens the outlook for growth globally, said a Reuters report.

On the MCX, Gold contracts for February were trading higher by Rs 25, or 0.06 percent, at Rs 39,092 per 10 gram at 0910 hours.

The international market was closed on Wednesday on account of the New Year holiday. In domestic market gold and silver traded with very thin volumes.

“Both precious metals slipped from day high, following U.S. President Donald Trump's tweet for signing first phase trade deal with China on 15th January. However, weakness in dollar index supported prices,” Manoj Kumar Jain, Director, IndiaNivesh Commodities told Moneycontrol.

“At MCX Gold is expected to hold 38800 and silver prices expected to hold 46100 levels, and any dip in the gold towards 38900 will be an opportunity to buy with a stop loss of 38770 for the target of 39200. Silver can also buy around 46200 with a stop loss of 45980 for the target of 46850,” he said.

Track live Gold price here

Trading strategy:

Expert: Jateen Trivedi, Sr. Research Analyst - Commodity & Currency at LKP Securities

On the daily chart Gold traded flat on the back of year-ending holiday season with little participation globally, but undertone remains bullish. A Phase I deal will be signed on 15 Jan20 which can limit the rally on upside.

Prices overall are in a positive trend market bias. Prices can be in the bullish momentum till the time they are above 38,100 on a closing basis. For the day 39,125-39,250 will act as resistance whereas 39,000-38,875 as supports.

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February has been moving in correction mode after the sharp rise witnessed in the last week. LBMA GOLD Spot has been showing nervousness in the zone of $1525-1528 levels. There is the formation of a Shooting star candlestick pattern which suggests a further correction is possible.

Hence we will adopt a sell on the rise strategy for MCX Gold. Prices have been intact in the upward moving channel and testing the channel support as well as Bollinger bands.

Intraday strategy: MCX Gold February Sell in the range of 39100-39140 with 39210 as stop loss and target of 38950 levels.

Disclaimer: The views and investment tips expressed by investment 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.