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Gold Price Today: Yellow metal trades lacklustre, US inflation data may set the direction for bullion

Gains in gold are being capped by strength in the dollar but rising coronavirus cases and profit-taking in the global equities are supporting the precious metal at lower levels

September 14, 2021 / 10:53 AM IST

Gold was moving flat in early trade on September 14, mirroring muted trend in the global market as gains in dollar dented the metal’s safe-haven appeal.

On MCX, October gold was trading 0.06 percent lower at Rs 46,881 at 1015 hours and silver, too, suffered losses in early trade.

Gains in equities also dented gold prices as investors embarked on a fresh spell of buying after India's retail inflation eased to 5.3 percent in August, boosting confidence that the central bank may maintain its stance and keep the rates low for an extended period.

The dollar index gained ahead of the US CPI and core CPI data expected later on September 14.

Analysts expect inflation to be on a higher side, which could prod the US Federal Reserve to start tapering post-pandemic stimulus earlier than expected.

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Gains in gold were capped by strength in the dollar. However, rising coronavirus cases and profit-taking in the global equities supported the metal at lower levels, said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.

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"Gold is having support at $1,784-1,772 per troy ounce and resistance at $1,804-1,818 per troy ounce. Silver is having support at $23.55-23.20 per troy ounce and resistance at $24.14-24.50 per troy ounce," said Jain.

On MCX, gold has support at Rs 46,660-46,500 and resistance at Rs 47,100-47,330. For silver, support is at Rs 62,900-62,500 and resistance at Rs 63,800-64,100 levels.

“We suggest buying gold on dips around Rs 46,700 with a stop loss of Rs 46,500 for the target of Rs 47,100," Jain said.

Technical indicators

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

Gold paused after recent losses as the dollar came to a halt after testing a two-week high. Correction in bond yields and some ETF inflows also lent support. Inflation concerns, persisting virus risks, China’s regulatory crackdown and geopolitical tensions are also supporting gold prices.

Gold may remain choppy ahead of the US inflation data, however, a reading in line with or lower than expectations may ease worries about Fed's tightening and lend support to prices.

Amit Khare, AVP- Research Commodities, Ganganagar Commodities

Technical charts are showing some strength in bullion. Momentum indicator RSI is also pointing to the same in hourly as well as a four-hourly chart. Traders are advised to create fresh buy positions in gold and silver in small dips near below given support levels.

October gold support 1: Rs 46,700 | Support 2: Rs 46,500 | Resistance 1: Rs 47,100 | Resistance 2: Rs 47,300.

Sandeep Matta, Founder, TRADEIT Investment Advisor

The lacklustre movement in gold continues and it somehow managed to trade above $1,790/oz in a stagflation setup.

The dollar gained against all currencies as taper talk gathered pace, making the precious metal a non-happening commodity.

On MCX, gold is consolidating around RS 47,000 while trading in a key pivotal range.

Key level for gold: Rs 46,906

Buy zone: Above Rs 46,915 for the target of Rs 47,045-47,143

Sell zone: Below Rs 46,900 for the target of Rs 46,775-46,625

Abhishek Chauhan, Head Commodity and Currency at Swastika Investmart

US CPI data could be the key trigger for gold and silver prices.

Gold has resistance at Rs 47,200 and above this level, strong buying momentum is expected, which may lead it to Rs 47,800 level, else selling pressure can be seen again from this level. Silver is also holding

support of Rs 63,300 with resistance at Rs 64,200.

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.
Nishant Kumar
Tags: #Gold
first published: Sep 14, 2021 10:53 am

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