Gold price today: Yellow metal trades higher; may face resistance near Rs 49,440

Source: Reuters

Gold prices rose marginally in Indian markets on December 7 morning, tracking a muted trend in international spot prices.

On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.19 percent at Rs 49,266 per 10 gram at 0920 hours. March silver was trading 0.08 percent lower at Rs 63,765 per kilogram.

Experts are of the view that the precious metals can remain volatile this week and investors can go for buy-on-dips approach. The yellow metal may find support near Rs 48,800, while the immediate resistance is placed at Rs 49,440-49,700.

Gold and silver prices settled on a positive note in the international markets on Friday. February gold futures settled at $1,842.10 per troy ounce and March silver at $24.31 per troy ounce.

Domestic markets settled on a mixed note. February gold future settled at Rs49,172 per 10 grams with a loss, while March silver settled at Rs63,813 per kilogram with a gain of 0.29 percent.

Gold gained 3.02 percent and silver 7.38 percent in the international markets in the previous week. Domestic markets were also followed the trend and gold gained 2.23 percent and silver gained 5.90 percent at the MCX, data showed.

Downbeat US non-farm employment data and weakness in the dollar index supported prices of both the metals, say experts. The Dollar index is near 2-1/2 years low, supporting global commodity prices.

“We expect both the precious metals to remain volatile this week and lower levels support is expected. Buy on dips strategy will work in both the precious metals. Gold is expected to hold $1,784 per troy ounce and silver is expected to hold $23 per troy ounce levels in the international markets,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“At MCX, gold is having support at Rs 48,800-48,550 and resistance at 49,440-49,700. Silver has support at Rs 63,100-62500 and resistance at Rs 64,500-65,000. We suggest buying in gold at around Rs 48,900 and in silver at around Rs 63,000 levels,” he said.

Domestic gold ended marginally lower, while silver rose on December 4, tracking firm overseas prices.

The dollar recovered from the lows of the session after investors shrugged off a weaker-than-expected US employment report.

Domestic bullion is expected to trade flat on the morning of December 7, tracking a subdued start in the international prices.

Technically, MCX February gold may see some hurdle near 49,500, which is near its 21-daily moving average. However, above it, gold can rally up to Rs 49,750-49900 levels.

MCX March silver is trading above Rs 64,000 levels; above Rs 63,500 indicates a positive momentum up to 65250-66300 levels. Support is at Rs 63,900-63,000.

Comex gold was trading unchanged near $1,842 after a flat close in the previous session. Gold turned sharply higher from lower levels of $1,764 as support from disappointing US non-farm payroll data, rising virus cases and hopes of additional fiscal stimulus triggered bargain buying.

However, the progress on the vaccine front and continuing ETF outflows remain a concern. Gold has bounced back from recent lows but has stalled near 1,850, a strong support level turned resistance. A sharp rise is unlikely unless ETF buying picks up or there are concrete stimulus measures.

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