Gold Price Today: Yellow metal trade lower, experts say buy for a target of Rs 46,660

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Gold was trading lower in the Indian markets on August 12 following a muted trend in international spot prices.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.12 percent lower at Rs 46,334 for 10 grams at 0930 hours. September silver futures were trading 0.36 percent lower at Rs 62,544 a kilogram.

Spot gold was little changed at $1,750.34 per ounce in the international market, having recorded its biggest one-day percentage gain since May 6 on August 11, a Reuters report said.

On august 11, gold and silver prices gained amid profit-taking in the dollar index after US CPI data. Both precious metals settled on a positive note in the international market.

December gold futures contract settled at $1,753.30 a troy ounce and September silver futures contract at $23.49 a troy ounce. The metals ended higher in the domestic market as well.

“Headline inflation is still at a higher rate from the US Federal Reserve target inflation and could give some room to the US Federal Reserve to maintain an accommodative monetary policy for a longer period and also support both precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“We expect both precious metals to remain volatile in today’s session ahead of the US unemployment claims data and any dips in the prices would be an opportunity for buying at lower levels,” he said.

At MCX, gold has support at Rs 46,100-45,920 and resistance at Rs 46,550-46,800. Silver has support at Rs 62,200-61,800 and resistance at Rs 63,100-63,600.

“We suggest buying in gold on dips around Rs 46,150 with a stop loss of Rs 45,880 for the target of Rs 46,660 and in silver around Rs 62,300 with a stop loss of Rs 61,800 for the target of Rs 63,500,” said Jain.

Technical indicators

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

Gold and silver are trading in an oversold zone. Momentum indicator RSI also gave positive divergence in four-hourly as well as hourly charts.

Traders are advised to create buy positions in gold and silver near given support levels and should also focus on these important technical levels for the day:

August Gold closing price: Rs 46,388 | Support 1-46,100 | Support 2-45,800 | Resistance 1-46,700 | Resistance 2-46,955.

September silver closing price; Rs 62771 | Support 1-62,400 | Support 2- 62,000 | Resistance 1 – 63,100 | Resistance 2 – 63,500.

Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold and silver ended higher on August 11, tracking overseas prices.

The Bullion Index ended higher, tracking firm domestic gold and silver prices. Data showed the consumer price index rose 0.5 percent in July after climbing 0.9 percent in June.  Economists polled by Reuters had forecast overall CPI would rise 0.5 percent and core CPI 0.4 percent.

On the domestic front, MCX October gold above 46,000 will continue its bullish momentum up to 46,580-46,700. Support is at 46,250-46,050 levels.

MCXBULLDEX May could trade on a bullish note within the 13,800-14,050 range.

On the domestic front, Silver September above 63,000 below which it could see 63,700-64,300 levels. Support is at 62,600-61,900 levels.

Hareesh V, Research Head Commodities, Geojit Financial Services

A strong US dollar and firm global equities continue to hit the safe-haven demand and thus the price of gold. Investors are also worried that the US Federal Reserve may taper its fiscal stimulus measures due to optimistic economic releases.

Concerns over the spread of the Delta variant of the Covid-19 virus continue to offer lower-level support to prices

As long as prices stay below $1,765, we can expect weak momentum to continue in the counter. It is required to turn above $1,835 to negate the bearish outlook and take prices higher.

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