Gold Price Today: Yellow metal trades higher, resistance at 47,330-47,350

October gold futures contract settled at Rs 47,158 per 10 grams and September silver futures contract settled at Rs 61,721 a kilogram. Gold and silver plunged last week amid gains in the dollar index.

The dollar traded near its nine and a half month high last week, denting gold’s allure for holders of other currencies, a Reuters report said. It rose after the US Federal Reserve gave hints for an early tapering.

“Rising coronavirus cases in China and other countries and restrictions in mobility in some of the countries supported precious metals at lower levels. We expect both precious metals to remain volatile this week and further strength in the dollar index could restrict gains in both precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Any rise in gold prices would be an opportunity for selling in the short term. Gold has support at $1,768-1,755 and resistance at $1,796-1,810. Silver has support at $22.70-22.40, while resistance is at $23.30-23.66,” he said.

At MCX, gold has support at Rs 46,980-46,800 and resistance at Rs 47,330-47,580. Silver has support at Rs 61,200-60,900 and resistance at Rs 62,200-62,700 levels. Kumar suggests selling in October gold on a rise around Rs 47,330 with a stop loss of Rs 47,580 for the target of Rs 46,900.

Technical indicators

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

COMEX gold traded marginally higher near $1,787 gaining 0.1 percent gain on August 20. Gold is supported by a correction in the US dollar index, rising virus cases, a slowdown in the Chinese economy, and geopolitical tensions relating to Afghanistan.
However, weighing on price is weaker investor interest as is evident from ETF outflows and stability in equities after recent losses.

Gold may continue within a narrow range amid mixed factors, however, a sharp rise is unlikely until it breaks past $1,800.

Sriram Iyer, Senior Research Analyst, Reliance Securities

International gold was little changed on August 20, with gains curbed by a stronger dollar, while growing concerns over a global economic slowdown due to a spike in COVID-19 infections underpinned the safe-haven metal.

Silver, on the other hand, ended weaker. Domestic gold and silver prices ended flat to weaker, tracking overseas prices.

Technically, MCX October gold could see sideways momentum where support is at 47,200-47,000 and resistance at 47,350-47,500.

MCX Silver September above 61,500 levels could see 62,400-62,900 levels. Support is at 61,000-60,400 levels.

MCXBULLDEX May could trade on a bearish note within the range of 13,975-14,200 level.

Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited

We have seen some profit booking in bullions from higher levels. Gold and silver are making a bottom, and even the momentum indicator RSI is creating a positive divergence.

Traders are advised to create fresh longs positions in gold and silver and should also focus on important technical levels given below for the day:

August Gold closing price: Rs 47,158 | support 1-46,950 | support 2-46,800 | resistance 1-47,350 | resistance 2-47,500.

September silver closing price Rs 61,721 | support 1-61,100 | Support 2-60,500 | resistance 1-62,350 | resistance 2-63,000.

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