Gold Price Today: Yellow metal trade higher, experts say buy on dips for a target of Rs 47,220

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Gold was trading higher in the Indian market on July 2 despite muted international spot prices as investors stayed away from making big bets ahead of the US nonfarm payrolls data.

On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.32 percent higher at Rs 47,188 for 10 grams at 0930 hours. September silver contracts were up 0.26 percent at Rs 69,299 a kilogram.

US non-farm payrolls data due later on July 2 is likely to show an increase of 690,000 jobs in the previous month compared with 559,000 in May, according to a Reuters poll.

Gold and silver showed extreme volatility on July 1 amid strength in the dollar index. Both precious metals settled on a mixed note in the international market. Due to weakness in the rupee, the metals ended higher in the domestic market.

The dollar index climbed to a two-and-a-half-month 5 high and crossed crucial resistance of 92.40. The US benchmark 10-year bond yield also crossed 1.50 percent and pushed the precious metals lower.

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“Larger than expected fall in the unemployment claims last week in the US supported the dollar index and pushed precious metal prices lower. However, gold prices were supported by higher crude oil prices but due to weakness in the base metals, silver settled lower,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect both precious metals to remain volatile in today’s session ahead of the US job data,” he said. Gold has support at $17,64-1,750 a troy ounce and resistance at $1,788-1,800 per. For silver, support is at $25.88-25.55 a troy ounce and resistance at $26.40-26.70, Jain said.

At MCX, gold has support at Rs 46,820-46,600 and resistance at Rs 47,220-47,480. Jain suggests buying in gold on dips around Rs 46,800 with a stop loss of 46,580 for the target of 47,220.

Technical indicators:

Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities.

Comex gold was trading marginally higher near $1,778 after gaining 0.3 percent the previous day. Gold has recovered from recent lows amid dip-buying, renewed virus concerns and mixed economic data from major economies.

However, weighing on price is a stronger dollar amid Fed’s monetary tightening expectations, strength in equity markets and lack of investor buying.

Gold has edged up amid some buying interest at the start of a new quarter and renewed virus concerns, however, general bias remains weak owing to the Fed's tightening outlook.

US jobs report will be the focus for the day and may provide direction to the dollar, and in turn gold.

Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited

Gold and silver are in oversold zones. The momentum indicator RSI is also giving strong positive divergence on the daily chart.

Traders are advised to go long in gold and silver near support levels and focus on these technical levels for the day:

August gold closing price Rs 47,039; support 1: 46,800; support 2: 46,600; resistance 1: 47,225 and resistance 2: 47,450.

September silver closing price: Rs 69,120, support 1: 68,500; support 2: 68,000, resistance 1: 69,700 and resistance 2: 70,200.

Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities

International gold spot and futures extended gains on July 1 supported by opportunistic buying and unwinding of short bets overnight.

Domestic gold ended marginally higher but was off the session highs, while silver was also off its high and ended flat, tracking overseas prices.

Domestic gold and silver prices could start flat on July 2, tracking overseas prices. On the domestic front, MCX August gold resistances are at 47,100 and 47,300 and supports at 46,900 and 46,700.

MCX July silver resistances are at 69,100 and 70,000. Supports are at 68,780 and 66,100.

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