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Gold Price Today: Yellow metal to witness sideways movement amid global growth worries

Gold price may remain choppy reflecting volatility in larger financial market and growth concerns, while the energy crisis is assessed, says Ravindra Rao of Kotak Securities

October 28, 2021 / 11:33 AM IST

Gold was trading flat in the Indian market on October 28 as international prices consolidated near the key $1,800 level supported by a pullback in US bond yields ahead of key central bank meetings that may offer clues on the monetary policy tightening calendar.

On the Multi-Commodity Exchange (MCX), the gold contracts were marginally up 0.04 percent to Rs 47,982 for 10 grams at 9.49 am. December silver futures were down 0.33 percent at Rs 64,950 a kilogram.

Gold has comfortably taken out its August top and consequently, the primary downtrend is now exhausted. It has also managed to successfully absorb the supply at 100-day average (at Rs 47,550 – 476,00 range) and trading above it, turning the intermediate trend up, said Manoj Dalmia, Founder and Director- Proficient Equities Limited..

In other words, it’s now a buy-on-decline regime for the metal, said Dalmia.

In the short term, support will be at Rs 47,600 and gold may be bought on weakness above this level. The intermediate uptrend remains active as long as gold stays above Rs 47,200, with the target at Rs 48,500 and beyond.

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Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

Comex gold was trading mixed near $1,800 a troy ounce after gaining 0.3 percent the previous day.

Gold traded higher supported by a correction in the US dollar index, lower bond yields and a correction in equity markets.

Global growth worries have dented the risk sentiment, increasing gold’s safe-haven appeal. ETF inflows also show buying interest in gold. However, weighing on price is expectations of monetary tightening by the Federal Reserve and other central banks to curb rising price pressure.

Gold rescaled $1,800, reflecting good buying interest but may remain choppy in the face of volatility in larger financial market and growth concerns while the energy crisis is assessed.

Ravi Singh, Vice President & Head of Research, ShareIndia

The gold market is moving sideways as the traders are awaiting the outcome of central banks' meetings scheduled in this and next week.

We expect the sideways movement in gold to continue for a few days. However, the latest corona Delta outbreak in China and a few other countries is expected to worsen in the coming days. The fear may trigger an upward move in gold which may continue till the festival season ends.

Buy zone above-Rs 48,000 for the target of Rs 48,200

Sell zone below-Rs 47,800 for the target of Rs 47,500

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

Gold and silver prices were higher and near their daily highs at midday on October 27, supported by a weaker dollar index and falling US treasury yields.

We saw some profit-booking in bullions at higher levels, which may continue for the next one or two trading sessions.

The momentum indicator RSI is also pointing to the same on the daily chart, so traders are advised to make fresh short positions in gold and silver on a small bounce near the given resistance levels. Traders should focus on these important technical levels.

December gold closing price-Rs 47,962 | Support 1-Rs 47,700 | Support 2-Rs 47,500 | Resistance 1-Rs 48,100 and Resistance 2-Rs 48,260.

December silver closing price-Rs 65,165 | Support 1-Rs 64,600 | Support 2-Rs 64,000 | Resistance 1-Rs 65,500 and Resistance 2-Rs 65,900.

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 28, 2021 10:12 am

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