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Gold Price Today: Yellow metal to see profit-booking amid rising bond yields, strong dollar

Gold saw profit0booking on October 26 which may sustain for a few more trading sessions, says Ravi Singh of ShareIndia

October 27, 2021 / 10:23 AM IST

Gold was trading flat in the Indian market on October 27 as international prices retreated from the key $1,800-mark after a strong dollar and elevated bond yields dented bullion’s safe-haven appeal ahead of key central bank meetings.

On the Multi-Commodity Exchange (MCX), the gold contracts were down 0.08 percent to Rs 47,775 for 10 grams at 9.40 am. December silver futures were marginally up 0.02 percent at Rs 65,001 a kilogram.

A day earlier, gold was steady at Rs 48,171 on rupee appreciation and subdued global trends. The precious metal managed to trade above $1,800 on rising coronavirus cases in China and inflationary pressure globally.

At home, gold retreated from the resistance level of Rs 48,300. The dollar, which moves opposite to gold, gained ground by 0.21 percent in the previous session. US bond yields also inched up after two days of downwards movement. Strong US Consumer confidence and new home sales data put pressure on gold and silver prices.

More downside is expected in gold and silver. On MCX, gold has support at Rs 47,450, while for silver, it is seen at Rs 64,400, said Abhishek Chauhan, Head of Commodity & Currency, Swastika Investmart.

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Trading Strategy

Manoj Kumar Jain of Prithvifinmart Commodity Research

Gold and silver plunged on October 26 after upbeat US economic data and rebound in the dollar index. Both precious metals settled on a weaker note in the international markets.

Gold is expected to hold $1,784 per and silver $24 on October 27. Gold has support at $1,784-1,772 and resistance at $1,804-1,818, while silver has support at $23.96-23.70 and resistance at $24.44-24.70.

On MCX, gold has support at Rs 47,660-47,500 and resistance at Rs 48,055-48,220, while silver has support at Rs 64,600-64,220 and resistance at Rs 65,400-66,100 levels.

We suggest buying gold around Rs 47,660 with a stop loss of Rs 47,480 for the target of Rs 48,055 and silver around Rs 64,700 with a stop loss of Rs 64,200 for the target of Rs 65,700.

Manoj Dalmia, Founder and Director-Proficient Equities

MCX gold is technically in a very strong uptrend, taking cues from the Comex gold, which is supported by increasing worries about inflation in the US.

The increasing demand in domestic gold due to improved retail buying and rising footfall at jewellery showrooms due to lucrative discounts and offers has held the prices.

Buy zone-Rs 48,000 for the target of 48,350

Sell zone below-Rs 47,900 for the target of Rs 47,600

Ravi Singh, Vice President & Head of Research, ShareIndia

The market focus is on the key meetings of the Bank of Japan and the European Central Bank (ECB) on October 28 and the next week’s Federal Reserve and Bank of England policy decisions.

Investors are trading cautiously this week due to uncertainty over the timing of central bank rate hikes amid rising inflation concerns.

After a continuous rally, gold witnessed profit booking on October 27, which may sustain for few more trading sessions.

Buy zone above -Rs 48,000 for the target of Rs 48,350

Sell zone below - Rs 47,700 for the target of Rs 47,400

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

Gold and silver prices were lower on October 26. Both metals’ bulls remain comfortable, as near-term price uptrends are in place and the overall path of least resistance is sideways to higher.

On October 26, we saw some profit-booking in bullions at higher levels, which may continue for the next one or two sessions.

The momentum indicator RSI is also pointing to the same on daily charts. Traders should make fresh short positions in gold and silver on a small bounce near given resistance levels.

Here are the important technical levels for them to focus on for the day:

December gold closing price-Rs 47813 | Support 1-Rs 47,600 | Support 2-Rs 47,400 | Resistance 1- Rs 48,012 and Resistance 2-Rs 48200.

December silver closing price-Rs 64612 | Support 1-Rs 64,000 | Support 2-Rs 63,200 | Resistance 1-Rs 65,500 and Resistance 2 - Rs 65900.

Disclaimer: The views and investment tips expressed by 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.

 
Sandip Das
first published: Oct 27, 2021 10:23 am

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