The bullion metal lost Rs 2,562, or 4.68 percent, for the week on MCX as investors booked profit (Image courtesy: Reuters)
Gold prices fell in Indian markets on January 25, tracking a muted trend in international spot prices. On the Multi-Commodity Exchange (MCX), February gold contracts were trading lower by 0.04 percent at Rs 49,119 for 10 grams at 0920 hours. March silver was trading 0.34 percent lower at Rs 66,871 a kilogram.
Experts are of the view that investors can buy any dip towards Rs 49,000 for a target of Rs 49,400 per 10 gm. Gold came under pressure due to recovery in the dollar but stimulus hopes will keep the sentiment alive.
Gold and silver prices settled on a weaker note in the international markets on January 22. February gold futures contracts settled at $1,855.30 per troy ounce and March silver at $25.55 per troy ounce.
Domestic markets ended weaker on January 22. Gold and silver prices slipped amid better-than-expected US flash manufacturing and services PMI data and rollout of the COVID-19 vaccine.
“Gold and silver prices reacted negatively after upbeat data but got support at lower levels amid hope of further US stimulus and weakness in the dollar index. We expect both the precious metals to remain volatile this week and expect to get support at lower levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, gold has a support at 48,920-48,700 and resistance at 49,330-49,600; silver has support at 66,000-65,500 and resistance at 67,200-68,000 levels,” he said.
Jain said buying in gold on dips around 48,800 with the stop loss of 48,550 for the target of 49,400 and buy silver on the dips around 65,800 with the stop loss of 65,000 for the targets of 67,200.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex gold trades marginally lower near $1,854/oz after a 0.5 percent decline in the previous session. Gold is pressurised by a recovery in the US dollar index from recent lows, continuing ETF outflows, and lack of cues from major central banks.
However, supporting price is hopes of additional US stimulus, rising virus cases, mixed economic data from major economies and US-China tensions.
Gold may remain choppy unless there are fresh triggers but general bias may be on the upside on the stimulus expectations.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices gave up gains and ended down close to 1 percent, while silver slipped over 2 percent on January 22.
Domestic gold and silver ended lower, tracking overseas prices. The dollar drifted higher after three straight days of losses and riskier currencies fell after bleak non-US economic data pushed investors towards the safe-haven appeal of the greenback.
Domestic bullion could trade flat on January 25, tracking international prices.
Technically, MCX April gold has bounced back from 48,900 levels and reversed above 49,300, indicating a bullish momentum up to 49,500-49,760 levels. Support is at 49,150-48,900 levels.
MCX March silver bounced back from 66,500, above which it will continue its bullish to 67,700-69,200. Support is at 65,800-64,700 levels.
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