Gold Prices Today: Bullish trend likely to sustain with further rally on the cards

Gold prices held steady on October 25 after cutting gains in the prior session on US Federal Reserve chief Jerome Powell’s comment that inflation could ease next year and the central bank was on track to start tapering its stimulus.

On the Multi-Commodity Exchange (MCX), gold contracts were up 0.21 percent to Rs 47,898 for 10 grams at 9.27 am. December silver futures were up 0.5 percent to Rs 65,983 a kilogram.

Last week, pressure was seen in the dollar index, leading to a rise in prices of gold and silver and this trend is likely to continue this week as well. In COMEX gold, above $1800 may be seen at $1830-1835 levels and further upside move may lead to the levels of $1900, said Abhishek Chauhan, Head of Commodity and Currency at Swastika Investmart.

"In MCX, gold has resistance at Rs 48,500 and above that it may test the levels of Rs 49,000 whereas support can be seen at Rs 47,200. Silver has support at Rs 64,300 and on upside, we may see the levels of Rs 68,000-69000," he said.

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Trading Strategy

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

COMEX gold trades changed little near $1795/oz after a 1.6 percent gain last week. Gold remains supported by a weaker US dollar, retreat in bond yields, increasing inflation concerns, renewed virus concerns and mixed economic data from major economies. However, weighing on price is lack of investor buying, strength in equity markets and increasing expectations of Fed’s monetary tightening. Gold continues to struggle to sustain above the $1800/oz level which shows lack of confidence however with increasing challenges to global economy, prices may remain supported.

Manoj Kumar Jain of Prithvifinmart Commodity Research

Gold and silver prices settled on a positive note in the international markets on October 22. Gold December futures contract settled at $1,793.35 per troy ounce, up 0.64 percent and silver December futures contract were settled at $24.39 per troy ounce, up 0.91 percent. Rising global energy prices fuelling global inflations and supporting safe haven buying in precious metals. We expect both the precious metals to remain positive this week and any dip in the prices would be a buying opportunity in both the precious metals.

Gold has support at $1,784-1,772, while it has resistance at $1,804-1,818 per troy ounce. Silver has support at $24.10-23.84, while resistance is at $24.66-24.94 per troy ounce. At, MCX, gold has support at Rs 47,600-47,440 and resistance at Rs 48,050-48,260, while silver has support at Rs 65,220-64,700 and resistance at Rs 66,100-66,600. We suggest buying gold around Rs 47,660 with a stop loss of Rs 47,440 for the target of Rs 48,100 and silver around Rs 65,200 with a stop loss of Rs 64,700 for the target of Rs 66,100.

Ravi Singh, Vice President & Head of Research at ShareIndia

The US Bureau of Labor Statistics recently released the inflation data for September concerning the Consumer Price Index (CPI). The report showed that the CPI - urban (CPI-U) gained 0.4 percent, crossing the expectations. The manufacturing business outlook of Philadelphia fell a reading of 23.8 in October, down from its September reading of 30.7. The report along with festive demand in India made gold prices highly volatile last Friday.

Buy Zone - Rs 47,900 for the target of Rs 48,200
Sell Zone Below- Rs 47,600 for the target of Rs 47,400

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