Gold prices were steady on February 9 in international markets and near a two-week high scaled in the previous session, as inflationary risks and Russia-Ukraine tensions underpinned the safe-haven metal, despite prospects of an aggressive rate hike by the US central bank.
At the Multi-Commodity Exchange (MCX), gold contracts were trading 0.02 percent lower at Rs 48,419 for 10 grams at 9.24 am and silver added 0.29 percent to trade at Rs 62,550 a kilogram.
Gold and silver prices advanced in the previous session despite rising US dollar and bond yield, which kept the upside limited in precious metals. Buying momentum is looking strong in gold and silver which may take the prices to a new high. However, gold in Comex has resistance at $1835. On MCX, gold has resistance at Rs 48550 and support at Rs 48100, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
Trading Strategy
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades little changed near $1828/oz after a 0.3% gain in previous session. Gold is supported by volatile equities, ETF inflows, geopolitical tensions and inflation concerns. However, higher bond yields and gains in US dollar index have limited the upside. Gold may remain in a range near $1800/oz amid mixed factors, but increasing monetary tightening expectations may limit upside.
Vidit Garg, Director, MyGoldKart
Despite highest 10-year bond yields in 2 years, gold bounced to $1829 yesterday as inflation concerns and Russia Ukraine tensions lifted demand. Technically, $1820 and $1814 holds important support on intraday charts, hence any move below these levels will bring bears into play. RSI is near 70 levels while ADX at 40 signals that upside is still left. On the upside, resistance is at $1837 as Dollar index and rising bond yields will continue to limit the gains.
Manoj Kumar Jain of Prithvi Finmart Commodity Research
Gold and silver extended gains on February 8 amid downbeat US economic data. Both the precious metals gained in the international markets. Gold April futures contract settled at $1827.90 per troy ounce with a gain of 0.33% while silver March futures contract settled at $23.20 per troy ounce with a gain of 0.52%. Both the precious metals also settled on a positive note in the domestic markets. We expect both precious metals to remain volatile in today’s session. If gold crosses $1833 per troy ounce, it could test $1845 per troy ounce levels and if silver crosses $23.30 per troy ounce, it could test $23.70 per troy ounce levels. Gold has support at $1818-1810 per troy ounce and resistance at $1834-1845 per troy ounce while silver has support at $23.00-22.70 per troy ounce and resistance at $23.40-23.70 per troy ounce.
At MCX, gold has support at Rs 48300-48100 and resistance at Rs 48580-48700 while silver has support at Rs 62000-61660 and resistance at Rs 62750-63100. We suggest buying gold on dips around Rs 48250 with a stop loss of Rs 48055 for a target of Rs 48600 and silver around Rs 62000 with a stop loss of Rs 61660 on a closing basis for a target of Rs 63000.
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