Gold Price Today: Yellow metal trades higher but stronger dollar, rising bond yields weigh heavy

Gold was moving higher in early trade in the Indian market on September 8 as investors kept faith in safe-haven metal amid concerns over the third wave of the coronavirus pandemic. However, a rise in the US dollar and benchmark US treasury yields capped the gains of gold.

At 0940 hours, MCX October gold was traded 0.17 percent higher at Rs 47,017.

Despite strength in the dollar index, gold and silver prices are finding support at lower levels as rising coronavirus cases in the United States and tensions in Afghanistan underpin prices.

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Gold slipped below $1,800 per troy ounce for the first time since August 26.

Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research said if the Federal Reserve’s Beige Book report that will come out later in the day show that the US economy is cooling then gold and silver prices will rebound.

Submitted eight times a year, the report is a summary of the prevailing economic conditions and is published ahead of the Federal Open Market Committee meetings.

"Precious metals are not taking risk premiums of geo-political tensions as of now but increasing positions by hedge funds are indicating that both the precious metals could rebound again," Jain said.

Gold is expected to hold key support of $1,784 per troy ounce. It has support at $1,784-1,772 per troy ounce and resistance at $1,810-1,824. Silver has support at $24-23.70 per troy ounce and resistance at $24.70-25, he said.

On MCX, gold has support at Rs 46,770-46,550 and resistance at Rs 47,100-47,330. For silver, support is at Rs 64,100-63,700 and resistance at Rs 65,000-65,800.

“We suggest buying in gold on dips around Rs 46,770 with a stop loss of Rs 46,500 for the target of Rs 47,300," Jain said.

Technical indicators

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

Gold corrected sharply from recent highs amid gains in the US dollar, higher bond yields and a sharp rise in Chinese equities.

However, supporting the price is geopolitical tensions, persisting virus risks, uneven global recovery and cautious stance of major central banks.

Gold has come off recent highs amid dollar gains, however, growth worries and the cautious tone of central banks may continue to support prices.

Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited

On September 7, we saw a huge profit booking in bullion and more is expected.

As per technical chart, the momentum indicator RSI is also indicating the same. Traders are advised to create fresh short positions in gold and silver on a small bounce near resistance.

Traders should also focus on these important technical levels for the day:

October gold support 1: Rs 46,600 | Support 2: Rs 46,300 | Resistance 1: Rs 47,100 | Resistance 2: Rs 47,300.

December silver support 1: Rs 64,000 | Support 2: Rs 63,500 | Resistance 1: Rs 65,200 | Resistance 2: Rs 65,750.

Sandeep Matta, Founder, TRADEIT Investment Advisor

Advantage has now shifted to bears and it is becoming a “sell-on-rise” market until it crosses and sustains $1,840 in the US market.

Key level for gold: Rs 47,079

Buy zone: Above Rs 47,080 for the target of Rs 47,200-47,425

Sell zone: Below Rs 47,060 for the target of Rs 46,800-46,700

Manoj Dalmia, Director and Founder, Proficient Equities

Gold is trading in a small tight range and consolidating around Rs 47,340 level.

Key level for gold: Rs 47,224

Buy zone: Above Rs 47,500 for the target of Rs 47,550-48,200

Sell zone: Below Rs 46,879 for the target of Rs 46,879-46,130

Abhishek Chauhan, Head Commodity and Currency at Swastika Investmart

On MCX, gold has support at Rs 46,700 and if this level is broken, selling pressure may get extended towards Rs 46,200 with resistance at Rs 47,250. Silver has support at Rs 63,700 and resistance at Rs 65,500.

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