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Gold Price Today: Yellow metal trades lower, experts say buy on dips for a target of Rs 47,220: Experts

Gold may remain range-bound below $18,00 until there is more clarity about the Fed's monetary policy stance, experts say.

June 29, 2021 / 09:41 AM IST
Representative image (Source: Shutterstock)

Representative image (Source: Shutterstock)

Gold was trading lower on June 29 following muted trend in international spot prices that were down on a firm dollar, making the bullion expensive for holders of other currencies.

On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.18 percent lower at Rs 46,925 for 10 grams at 0930 hours. July silver futures were trading 0.34 percent lower at Rs 67,910 a kilogram.

Concerns that the US Federal Reserve will tighten its monetary policy sooner than expected also dented the metal’s appeal, a Reuters report said.

Gold is seen as a hedge against inflation, though a rate hike by the Fed will increase the opportunity cost of holding bullion and dull its appeal, it said.

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Gold & Silver Rates Yesterday

Friday, 24th June, 2022

Gold Rate in Mumbai Yesterday

  • 10g of 24K gold in Mumbai
    50,850
  • 10g of 22K gold in Mumbai
    48,430

Friday, 24th June, 2022

Silver Rate in Mumbai Yesterday

  • 10g silver in Mumbai
    660
  • 1kg silver in Mumbai
    66,000
Show

Gold and silver traded sideways despite weakness in the 10-year bond yields in the United States on June 28. Gold and silver settled on a mixed note in the international market.

At home, both metals settled on a slightly positive note. They traded sideways amid profit-taking in crude and rally in global equities restricting gains in the metals, experts said. Traders can use dips to buy into the precious metal for a target above Rs 47,000 a 10 gm.

“We expect gold and silver could show some strength in today’s sessions. Gold is having support at $1,768-1,755 per troy ounce and resistance at 1,792-1,804 per troy ounce. Silver is having support at $25.88-25.55 per troy ounce and resistance at $26.55-26.80 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“At MCX, gold has support at 46,850-46,600 and resistance at 47,220-47,450. Silver has support at 68,500-68,100 and resistance at 69,500-70,100 levels,” he said.

Jain suggested buying in gold on dips around Rs 46,800 with a stop loss of Rs 46,550 for the target of Rs 47,220 and in silver around Rs 68,500 with a stop loss of Rs 67,900 for the target of Rs 69,500.

Technical indicators

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

Comex gold was trading marginally lower near $1,775 after gaining  0.2 percent the previous day. Gold is pressurised by a stable dollar, Fed’s monetary tightening concerns and a drop in Chinese imports in May.

However, renewed virus concerns and mixed economic data from major economies are supporting the metal. ETF inflows also showed some buying interest.

Gold may remain range-bound below $1,800 until there is more clarity on the Fed's monetary policy stance.

Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited

The momentum indicators are turning up and making the bottom on the daily charts. Traders are advised to create a long position in gold and for silver near the support levels.

Traders should also focus on important technical levels given below for the day:

August gold closing price Rs 47,008, support 1: 46,800, support 2: 46500, resistance 1: 47150 and resistance 2: 47,450.

July silver closing: Rs 68,141, support 1: 67,700, support 2: 67,300, resistance 1: 68,500 and resistance 2: 69,000.

Expert: Abhishek Chauhan Head Commodities & Currencies, Swastika Investmart

Gold and silver prices were trading with a bearish bias and looking weak. Strength continued in the dollar and we expect selling pressure to remain.

Gold prices are facing stiff resistance near Rs 47,400, while Rs 46,500 is an important support levels to track.

A break will open the door for the next downside of 46,500 and 45,500 in the coming sessions. The overall trend is looking weak, and we may see some selling pressure from higher levels.

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.
Kshitij Anand is the Editor Markets at Moneycontrol.
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