Gold Price Today: Yellow metal may edge higher, traders can create fresh buy positions on every dip

Gold prices were underpinned by a subdued dollar on Tuesday, with investors looking ahead to US non-farm payrolls data, which could be key to the Federal Reserve’s tapering decision.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading in the green, up 0.27 percent at Rs 47,293 for 10 grams at 0924 hours. September silver futures was up 0.69 percent at Rs 63,459 a kilogram.

Gold prices on August 30 jumped by Rs 329 to Rs 47,478 per 10 gram tracking a sharp spike on Friday evening in the global market after the Fed chief did not give any timeline for increasing rate but the upside was capped by rupee appreciation.

Gold and silver showed some profit taking at higher levels after Friday’s strong gains. Both the precious metals were settled on a slightly weaker note in the international markets. Due to strength in the rupee both the precious metals settled on a weaker note in the domestic markets, said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.

At MCX, gold has support at Rs 47,000-46,820 and resistance at Rs 47,330-47,580; silver has support at Rs 63,300-62,900 and resistance at Rs 63,900-64,200 levels. We suggest buying in gold around Rs 47,100 with a stop loss of Rs 46,920 for the target of Rs 47,400, he added.

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International spot and futures gold prices ended weaker on Monday. Prices were weighed down as the dollar ticked up from its lows and investors showed caution in the run-up to the release of a key US jobs report later in the week. Domestic gold and silver ended in the red on Monday, tracking overseas markets.

Technically, COMEX December Gold supports are at $1805 and $1800. Resistances are at $1825 and $1832. MCX Gold October supports are at Rs 47,040 and Rs 46,920. Resistances are at Rs 47,390 and Rs 47,615.

Gold and silver futures prices are weaker in midday US trading Monday, on some normal corrective pullbacks after gains Friday that produced technically bullish weekly high closes.

Gold and silver are showing strength in daily chart and Momentum indicator RSI also giving positive signal, so any dips is a opportunity to create fresh long positions in bullions. Fundamentals also supporting prices, So traders are advised to create fresh buy positions in Gold and Silver near given support levels, traders should also focus important technical levels given below for the day

October Gold closing price Rs 47,164, Support 1 - Rs 46,950, Support 2 - Rs 46,700, Resistance 1 - Rs 47,360, Resistance 2 - Rs 47,550.

December Silver closing price Rs 63,587, Support 1 - Rs 63,100, Support 2 - Rs 62,500, Resistance 1 - Rs 64,000, Resistance 2 - Rs 66,600.

Gold prices witnesses routine correction after the breakout on Friday and trying to consolidate above its 100-DEMA level. The precious metal after fed dovish commentary on tapering related times lines has entered into its strong resistance zone of past few months which is established at $1835/oz and more traction can be expected once it cross and sustain above these levels.

The outlook is positive on the back of dollar and yield weakening while we recommend investors to buy gold and add more on every dip.

Key level for Gold August Contract – Rs 47,268

Buy zone above Rs 47,275 for the target of Rs 47,390-Rs 47,500

Sell zone below – Rs 47,250 for the target of Rs 47,090-46,950