Gold price today: Yellow metal trades flat; likely to find support near Rs 50,440

Gold was trading flat on October 6 with a negative bias following a muted trend in the international spot prices.

On the Multi-Commodity Exchange (MCX), December gold contracts were trading lower by 0.13 percent at Rs 50,560 per 10 gram at 1000 hours. December silver futures were trading 0.10 percent lower at Rs 61,880 per kg.

Experts are of the view that support exists at Rs 50,400 and if the yellow metal surpasses 50,700, then an upside move towards Rs 51,000 is possible.

Gold and silver gained amid weakness in the dollar index and safe-haven buying due to more US White House officials testing COVID-19 positive. The dollar index slipped below the 93.50-mark during the evening session on October 5 and supported both the precious metals.

Gold also got support from better-than-expected US services data for September. In international markets, the metal settled at its highest levels in the last two weeks.

Despite the strength in the rupee, both the precious metals gained in domestic markets. Gold settled at Rs 50,626 per 10 gram and silver at Rs 61,941 per one kilogram.

“We expect both the precious metals to remain volatile ahead of the US Federal Reserve chairman and ECB President speeches later on Tuesday. Volatility in the dollar index and speculation over the second US stimulus also keep both the precious metals volatile. Both the precious metals continue to get support at lower levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“Gold is having support at $1904-1896 per troy ounce and resistance at $1930-1944 per troy ounce. Silver is having support at $24.20-23.88 per troy ounce and resistance at $24.84-25.20 per troy ounce,” he said.

Jain is of the view that on MCX, Gold has support at 50,440-50,300 and resistance at 50,800-50,950. Silver has support at 61,300-60,800 and resistance at 62,500-63,100. Both side moves are expected in the precious metals on October 6.

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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International bullion ended with gains on October 5 on optimism around a US stimulus bill and a weakened dollar. Bullion gained despite firm equity markets after reports that US President Donald Trump could soon be discharged from the hospital.

The dollar fell on optimism that US lawmakers will agree on a new stimulus to blunt the economic impact of the coronavirus.

Domestic bullion could trade flat on October 6, tracking international prices. MCX December gold traded on a positive note. It can see an upside move up to 50970-51050 levels above 50,700. On the downside, 50,400-50,150 will hold support.

Technically, MCX December silver could see a resistance zone near 62,600, which could act as a hurdle for further upside. Support is at 60,800-59,600 and resistance at 61,850-62,600 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

Comex gold was trading marginally lower near $1916/oz after a 0.7 percent the previous day. Gold price is being supported by a weakness in the dollar index, which is hovering near a two-week low on reduced safe-haven buying.

Gains in the equity market have, however, kept a check on gold prices while ETF investors have moved to the sidelines.

Gold continues to hold above $1,900, which shows that the overall momentum is still positive but choppy trade is likely as the trend is the dollar will be counterbalanced by general market risk sentiment.

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.