Gold price today: Yellow metal trades flat; buy on dips for a target of Rs 48,600, say experts

India Gold MCX June futures trade flat on Thursday tracking muted trend seen in the international spot prices, but the larger trend remains to be on the upside. Experts recommend investors to buy the dip for a target of Rs 48,600 per 10 gm.

On the Multi-Commodity Exchange (MCX), June gold contracts were trading lower by 0.05 percent at Rs 48,204 for 10 grams at 0935 hours. May silver futures were trading 0.03 percent lower at Rs 70,316 a kilogram.

Gold and silver showed solid strength on Wednesday in the international markets. Gold hit a two-months high and silver also hit one-month high on the Comex division.

Gold prices are inching closer to $1800 per troy ounce while Silver May futures contract settled at $26.57 per troy ounce. Both the precious metals settled on a positive note in the domestic markets.

Gold and silver gained amid weakness in the dollar index and decline on benchmark 10-year bond yields in the United States, suggest experts.

“We expect gold and silver prices remain firm and weakness in the dollar and global inflation concerns continue to support safe-haven buying in both the precious metals. Gold is expected to cross $1800 per troy ounce in today’s session,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.

“At MCX, Gold has a support at 48000-47770 and resistance at 48580-48800; silver is having support at 69500-68800 and resistance at 71400-72500 levels,” he said.

Jain suggests buying in the gold around 48000 with a stop loss of 47700 for the target of 48600 and in the silver around 70000 with a stop loss of 68800 for the target of 72200.

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Technical indicators

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

COMEX gold trades mixed near $1795/oz after a 0.8% gain yesterday. Gold remains supported by lower bond yields, general weakness in the US dollar, worsening virus situation, and rising US-Russia tensions.

However, weighing on price is lack of investor buying and concerns about India’s consumer demand owing to sharp price gains. With general weakness in the US dollar, gold may trade with a positive bias however a break above $1800/oz is needed to see extended gains.

Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver prices rose on Wednesday tracking the weaker dollar and subdued U.S. Treasury yields.

Domestic gold and silver ended higher on Wednesday, tracking the overseas prices.

Prices also found safe-haven demand as surging coronavirus cases is creating uncertainty which revived fears about the global economy.

Domestic gold and silver prices could start with marginal gains this Thursday morning tracking overseas prices.

Technically, MCX Gold June has given a breakout above 48000 levels indicating a strong upside momentum where support is at 47900-47500 levels. Resistance is at 48400-48700 levels.

Technically, MCX Silver has given a breakout of its range bound momentum above 70000 levels indicating an upside movement up to 70800-71700 levels. Support is at 69400-68800 levels.

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