The bullion metal lost Rs 2,562, or 4.68 percent, for the week on MCX as investors booked profit (Image courtesy: Reuters)
Gold was trading lower in the Indian market on January 22, tracking muted trend in international spot prices. On the Multi-Commodity Exchange (MCX), February gold contracts were trading lower by 0.17 percent at Rs 49,364 for 10 grams at 0920 hours. March silver was trading 0.74 percent lower at Rs 66,804 a kilogram.
Investors can use the dip towards Rs 49,100 to buy for a target of Rs 49750 per 10 gm, experts said. Weakness in the dollar index is likely to support safe-haven prices.
February gold futures contract settled on a weaker note at $1,865.90 per troy ounce while March silver futures contract settled at $25.85 per troy ounce on January 21. Both precious metals settled on a mixed note in the domestic markets.
Better-than-expected US housing, manufacturing and unemployment claims data triggered profit-taking in the metals. However, weakness in the dollar index supported prices at lower levels, experts said.
“We expect both the precious metals to remain volatile and further weakness in the dollar index could support prices at lower levels. On MCX, gold has support at 49,200-48,950 and resistance at 49,750-50,000. Silver has support at 66,800-66,200 and resistance at 68,000-68,500,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“We suggest buying in the gold at around 49,100 with the stop loss of 48,800 for the target of 49,750 and in the silver around 66,500 with the stop loss of 65,800 for the target of 68,200,” he said.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex gold was trading unchanged near $1,866/oz after a near flat close the previous day. Gold steadied on January 22 amid a pause in the US dollar’s recent decline. Also weighing on the price is the upbeat US economic data and lack of any clear cues from ECB or Bank of Japan, while ETF investors remained on the sidelines.
However, supporting price is increased US stimulus expectations, US-China tensions and rising virus cases.
Gold may witness choppy trade unless there are fresh triggers but the general bias may be on the upside, as US stimulus expectations may keep the pressure on the dollar.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices eased from a two-week high on January 21 as investors booked some profit following a rally in the previous session, while expectations for further stimulus and a weaker dollar capped downside.
Domestic gold ended lower, tracking overseas prices, while silver rose on international prices.
Prices also came under some pressure after the number of Americans filing new applications for unemployment benefits decreased modestly last week.
Domestic bullion could trade flat to lower on January 22 morning, tracking international prices.
Technically, MCX February gold holds a resistance of 65-Daily Moving Average at 49900 levels below which could see downside 49,300-49,000 levels. Resistance is at 49,700-49,900 levels.
MCX March silver holds a resistance zone at 67,400-67,700, where prices could retreat and can trade on bearish note up to 66,500-65,800.
Hareesh V, Research Head Commodities at Geojit Financial Services.
A weak dollar continues to support the yellow metal. Likewise, hopes of fresh economic stimulus measures from the US and fears of a second wave of infection continues to lift the demand for the commodity.
An improved global growth outlook would restrict major rallies in the counter.
If the support of $1,800 remains undisturbed, we can expect a recovery pullback in prices, however, it needs to break $1,885 to stabilise the momentum. The immediate downside turnaround point is seen at $1,770.Disclaimer
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