Gold prices traded lower in early trade in domestic futures trade on September 9 in light of weak global cues as dollar held ground against its peers.
A stronger dollar is negative for gold prices as it makes gold expensive in other currencies while investors tend to choose dollar over gold for investment.
The dollar index gained on September 8 amid concerns of delta variant in the United States and many other countries.
Investors await the outcome of European Central Bank (ECB) meet, which will be revealed later today, to get cues on the course of stimulus tapering and rate hikes.
Moreover, improving macroeconomic conditions and strong gains in equities also seem to have dented the appeal of gold. Major stock markets across the globe witnessed profit-taking in the previous session and supported safe-haven buying in the dollar once again.
At 1000 hours, MCX October gold was traded 0.25 percent lower at Rs 46,920.
"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 $23.88-23.55 per troy ounce and resistance at $24.34-24.70 per troy ounce," said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.
"On MCX, gold is having support at Rs 46,850-46,660 and resistance at Rs 47,240-47,500; silver is having support at Rs 63,800-63,300 and resistance at Rs 64,700-65,100 levels. We suggest selling the gold on rise around Rs 47,220 with a stop loss of Rs 47,440 for the target of Rs 46,800," said Jain.
Technical indicators
Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
The technical chart are again showing some short-covering rally in bullion. Momentum indicator RSI is also indicating the same in hourly as well as four-hourly chart. So, 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 46,800 | Support 2: Rs 46,600 | Resistance 1: Rs 47,260 | Resistance 2: Rs 47,465.
December silver support 1: Rs 63,500 | Support 2: Rs 63,000 | Resistance 1: Rs 64,750 | Resistance 2: Rs 65,550.
Sandeep Matta, Founder, TRADEIT Investment Advisor
Negative job data in the US coupled with the resurgence of COVID cases will be a short-term negative for the gold and therefore we advise investors to avoid making longs in gold until ii crosses and sustains $1,840/oz in the US market while traders can take positive bets based on below key pivot numbers.
Key level for gold: Rs 46,975
Buy zone: Above Rs 47,000 for the target of Rs 47,150-47,300
Sell zone: Below Rs 46,960 for the target of Rs 46,804-46,736
Abhishek Chauhan, Head Commodity and Currency at Swastika Investmart
The upside in gold may remain limited and prices are likely to bounce towards Rs 47,400 level. On the other side, ECB is also considering to hike interest rate which could unfold during its monetary policy meeting scheduled today in the evening. Silver has crucial support at Rs 63,700. If it holds this support then a bounce is expected today.
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.
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