Gold Price Today: Yellow metal to remain volatile; weak dollar, rising virus cases may lend support

Gold and silver were trading lower in the Indian market on September 7 on weak global cues. On the Multi-Commodity Exchange (MCX), October gold contracts were down 0.12 percent at Rs 47,370 for 10 grams at 0924 hours. September silver futures were trading 0.24 percent lower at Rs 65,134 a kilogram.

Gold and silver remained volatile as the US markets were closed on an account of Labour Day on September 6.

The US Federal Reserve could continue its soft monetary policy for a longer period after disappointing US job data, supporting the metals, Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.

“We expect both the precious metals to remain volatile in today’s session and the weakness in the dollar index and rising coronavirus cases in the US and other countries could support prices,” Jain said.

Gold has support at $1,814-1,800 a troy ounce and resistance at $1,834-1,850, while silver has support at $24.55-24.20 a troy ounce and resistance at $25.15-25.40, he said.

On MCX , gold has support at Rs 47,220-47,000 and resistance at Rs 47,660-47,850, while silver has support at Rs 64,800-64,500 and resistance at Rs 65,600-66,100. Jain suggested buying in gold at around Rs 47,300 with a stop loss of Rs 47,100 for the target of Rs 47,650.

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Technical indicators

Amit Khare, AVP-Research Commodities, Ganganagar Commodities

Gold and silver showed a mixed movement on September 6. Technical charts are showing some profit-booking on daily and four-hourly charts. The momentum indicator RSI also indicated the same. Traders should create fresh short positions in gold as well as silver near resistance levels and focus on these important technical levels for the day:

October Gold closing price: Rs 47,425 | Support 1- 47,300 | Support 2-47,000 | Resistance 1-47,500 | Resistance 2-47,700.

December Silver closing price: Rs 65,292 | Support 1- 65,000 | Support 2-64,500 | Resistance 1-65,600 | Resistance 2-66,000.

Sandeep Matta, Founder, TRADEIT Investment Advisor

Gold has been a frustrating trade as the precious metal struggles to find bullish momentum despite currency weakening and real interest rates staying well entrenched in negative territory.

Prices are trading in a tight range and consolidating around Rs 47,500 level. Globally, the precious metal has some near-term bullish technical advantage, however, it is facing some headwinds and closing above $1,835 will be a key challenge.

Key level for August gold contract–47,386
Buy zone above – 47,400 for the target of 47,550-47,700
Sell zone below – 47,375 for the target of 47,200-47,040

Tarang Bansal of Swastika

Gold prices retreated from a recent high on September 6 as the dollar, which moves opposite to gold prices, gained some ground after two weeks of consecutive selling. The dollar rose to 0.21 percent, while gold lost 0.33 percent in the September 6 trading session.

However, gold and silver prices may remain range-bound ahead of the European Central Bank (ECB) monetary policy meeting scheduled later this week. On MCX, gold has resistance at 47,800 and support at 47,000.

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