Gold Price Today: Yellow metal trade flat; support seen at 46,950

Gold was trading flat on August 20, tracking a muted trend in international spot prices that were weighed down by the rise in the dollar.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.15 percent higher at Rs 47,242 for 10 grams at 0930 hours. September silver futures were trading 0.08 percent higher at Rs 62,184 a kilogram.

The dollar index held near more than a nine-month high hit on August 19, denting gold’s appeal for the holders of other currencies, a Reuters report said.

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Gold and silver dipped on August 19 amid strength in the dollar index and a decline in unemployment claims in the United States. Both precious metals settled on a weaker note in international markets.

December gold futures contract settled at $1,781.20 a troy ounce and September silver contract settled at $23.19 a troy ounce.

Due to weakness in the rupee both metals settled on a mixed note in the domestic market.

On August 19, gold and silver dipped after strong gains in the dollar index. The index climbed to an eight-month high following the release of the US Federal Reserve meeting minutes and the possibility of early bond tapering, experts said.

“Better than expected data and Federal Reserve signal for bond tapering earlier this year restricted gains in both precious metals. However, rising coronavirus cases and geo-political tensions in the Middle East supported precious metal prices at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect both precious metal prices to remain volatile in today’s session. At MCX, gold has a support at 46,950-46,780 and resistance at 47,330-47,580 levels. Silver is having support at 61,600-61,200 and resistance at 62,500-63,100 levels,” he said.

Jain suggests selling in gold on a rise around Rs 47,350 with a stop loss of 47,580 for the target of 46,950.

Technical indicators

Amit Khare, AVP-Research Commodities, Ganganagar Commodities Limited

Traders are advised to create fresh longs positions in gold and silver and should also focus on important technical levels given below for the day:

August gold closing price Rs 47,169 | support 1- 47,000 | support 2-46,700 | resistance 1- 47,600 and resistance 2-47,850.

September silver closing price Rs 62,133 | support 1- 61,700 | sSupport 2-61,000 | resistance 1- 62,550 | resistance 2-63,000.

Sandeep Matta, Founder, TRADEIT Investment Advisor

For the last few days, gold has closed mostly unchanged and is stuck in the $1,770-1,790 range. Market participants will be eyeing an upcoming economic symposium, which could become the new catalyst for gold to surge.

On MCX gold is also finding its major support at 47,000 and trading with a short-term bullish technical advantage.

The outlook is positive for precious metals particularly due to heavy selloff in the global equity market and increasing cases of Delta variant. Traders are advised to follow key levels on both sides and investors can accumulate gold on every dip.

The key level for October gold contract–47,364
Buy zone above–47,365 for the target of 47,500-47,800
Sell zone below–47,350 for the target of 47,000-46,800

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