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Last Updated : Oct 04, 2019 09:41 AM IST | Source: Moneycontrol.com

Gold price today: Yellow metal rangebound, 38,050 likely to act as support

Experts suggest that investors should use dips to buy into Gold and Silver as the rally could well extend towards Rs 38,800 with respect to Yellow metal, and about Rs 46,500 on Silver.

Kshitij Anand @kshanand
5 | Russia - 2207.01 (Image source: )
5 | Russia - 2207.01 (Image source: )

Gold prices witnessed profit-taking in December futures trade on October 4 after registering a rally of more than 1 percent in the previous trading session. However, in the international markets, prices remain firm amid expectations of a rate cut by the US Federal Reserve.

Two Fed policymakers on October 3 signalled they are open to delivering another rate cut after a report showed the growth in the vast US services sector is slowing, but the Fed's No. 2, speaking late in the day, gave little away on his own thinking, said a Reuters report.

The yellow metal's December futures traded at Rs 38,346 per 10 gram, down by Rs 57 or 0.15 percent on the MCX around 09:20 AM IST. It closed 1.35 percent higher at Rs 38,403 on October 3.

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Gold and Silver prices gained in Thursday's session after downbeat US PMI and non-farm payroll data this week. Downbeat US data gave hope for further rate cuts by the US Federal Reserve in the next policy meeting.

Experts suggest that investors should use dips to buy into Gold and Silver as the rally could well extend towards Rs 38,800 with respect to Yellow metal, and about Rs 46,500 on Silver. Crucial support for the index is placed at Rs 38,050 on Gold, and Rs 45,000 on silver, they say.

The dollar index also corrected and supports precious metal prices. Gold future at Comex division test crucial resistance of $1520 and silver prices test $17.80 per troy ounce on Thursday. At MCX gold prices tested Rs 38,650 and silver prices test Rs 45,995.

“After weaker than expected US and European data, fear of slower global growth and selling pressure in global equities will continue to support bullion prices,” Manoj Kumar Jain, Director at IndiaNivesh Commodities, told Moneycontrol.

“We expect prices of both the precious metals remain firm and any dip in the prices of the gold towards Rs 38,300 and in silver towards Rs 45,300 will be an opportunity to buy,” he said.

Jain further added that Gold is expected to test 38,650 again and sustain above could extend rally towards Rs 38,800 while the support levels is seen at Rs 38,050.  “Silver prices could also test Rs 46,000 and sustain above could extend rally towards Rs 46,500. The level of Rs 45,000 act as major support for silver,” he added.

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First Published on Oct 4, 2019 09:41 am
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