Gold was trading with mild gains in the Indian market in the morning session on September 13, tracking muted global cues. At 10 am, MCX October gold was trading 0.16 percent higher at Rs 46,881.
Gold prices struggled to climb in the global markets as the US dollar gained against its peers ahead of the US consumer price prints due this week. The prices could influence the US Fed's decision on tapering the post-pandemic stimulus.
A record rise in the US inflation could prod the Federal Reserve to tighten its monetary policy sooner than expected and support the dollar index again, experts said.
However, rising coronavirus cases and geo-political tensions are supporting the precious metal at lower levels.
Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week and they could find support at lower levels.
"Gold has support at $1,774-1,762, while resistance is at $1,800-1,812 per troy ounce. Silver has support at $23.55-23.20, while resistance is at $24-24.40 per troy ounce," said Jain.
On MCX, gold has support at Rs 46,600-46,440 and resistance at Rs 47,000-47,220. For silver, support is at Rs 63,100-62,800 and resistance at Rs 63,900-64,200, he said.
Jain suggests buying gold on dips around Rs 46,620 with a stop loss of Rs 46,440 for the target of Rs 47,050.
Technical indicators
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Firmness in the dollar is weighing on gold price amid persisting debate about Fed’s monetary tightening. Weaker investor interest, as evident from ETF outflows, is also weighing on gold.
Geopolitical tensions, rising inflation, US-China tensions, China’s regulatory measures and persisting virus risks are supporting the metal.
Gold has come off its highs and may remain under pressure over Fed's tightening concerns but prices may remain close to $1,800 amid increasing challenges to the global economy.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
We have been witnessing some profit-booking in gold and silver for the last few sessions. Now, the technical charts are again showing some short-covering rally in bullion.
Momentum indicator RSI is also pointing to the same in hourly as well as a four-hourly chart, so traders are advised to create fresh buy positions in gold and silver in small dips near the below-given support levels.
October gold support 1: Rs 46,600 | Support 2: Rs 46,400 | Resistance 1: Rs 46,950 | Resistance 2: Rs 47,100.
Sandeep Matta, Founder, TRADEIT Investment Advisor
The volatility in global equity markets is increasing which could be the new catalyst the gold market participants are eyeing.
On MCX, gold is also trading with negative biases and all strategic positions should be hedged properly.
Key level for gold: Rs 46,848
Buy zone: Above Rs 46,860, for the target of Rs 46,944-47,050
Sell zone: Below Rs 46,840, for the target of Rs 46,750-46,600
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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