Gold price today | Yellow metal trades higher; buy for a target of Rs 47,300: Experts

India Gold MCX June futures trade higher on May 6 tracking positive trend in the international spot prices. Experts advise investors to buy the dip in the precious metal for a target of Rs 47,300 per 10 gm.

On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.26 percent at Rs 47,122 for 10 grams at 0935 hours. May silver futures were trading 0.25 percent higher at Rs 69,796 a kilogram.

Gold and silver showed mixed trends on Wednesday as both the precious metals slipped from nine-week highs after an adverse comment of the U.S. Treasury Secretary on interest rates on Tuesday.

Both the precious metals settled on a mixed note on Wednesday in the international markets. Gold June futures contract settled at $1784.30 per troy ounce Silver July futures contract settled at $26.52 per troy ounce. Both the precious metals were also settled on a mixed note in the domestic markets.

“The rebound in the dollar index restricted gains in both the precious metals. We expect both the precious metals to remain volatile in Thursday’s session ahead of U.S. unemployment claims data and both side moves are expected,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.

“At MCX, Gold has support at 46800-46650 and resistance at 47180-47440; silver has support at 69100-68500 and resistance at 69700-71400 levels. We suggest buying in the gold around 46850 with a stop loss of 46640 for the target of 47300,” he said.

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Technical indicators

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

COMEX gold trades little changed near $1785/oz after a 0.5% gain yesterday. Gold has turned choppy as mixed US economic data and mixed comments from Fed officials have clouded the outlook for Fed’s monetary policy.

Also, support from mixed economic data, persisting virus risks, and continuing stimulus measures is countered by a lack of ETF buying and concerns about Indian consumer demand.

Gold may remain choppy as market players asses Fed's stance but general bias is still on the upside amid persisting virus risks.
Expert - Hareesh V, Research Head Commodities at Geojit Financial Services

A weak US dollar and concerns over the second wave of Covid -19 in many countries continue to offer lower-level support to the yellow metal.

Meanwhile, firm global equities and signs of economic recovery in many counties may limit major rallies in the commodity.

Anyhow, investors may look forward to tomorrow’s US job report to get a clear direction on US economy and thus the price of precious metals.

As long as prices stay above $1760 we can expect the positive bias to remain intact but it is required to close above $1800 to continue major rallies. Anyhow, a close below $1720 is a sign of immediate trend reversal.

Expert - Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold recovered on Wednesday as the dollar and U.S. Treasury yields eased. Silver prices ended flat on Wednesday.

Domestic gold ended marginally higher while silver prices ended flat on Wednesday, tracking overseas prices.

The gold market ignored what Janet Yellen said on Wednesday and saw the fact that the Fed may not be in a position to raise rates at this point.

Domestic gold and silver prices could trade flat this Thursday morning and could trade in small trading band over the next couple of trading sessions.

Technically, MCX Gold June resistances are at 47050 and 47250. Supports are at 46900 and 46750.

Technically, MCX Silver July could resistances are at 70400 and 71200. Supports are at 69000 and 68300.

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