Gold Price Today: Yellow metal trades higher; buy for a target of 46,100: Experts

India Gold MCX October futures rose on Wednesday following positive trend seen in the international spot prices on worries over a surge in coronavirus’ Delta variant cases.

Risk sentiment in wider financial markets remained subdued, as coronavirus cases in several Asian countries continued to surge, threatening the economic outlook and driving some investors towards safe-haven assets, said a Reuters report.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.18 percent higher at Rs 46,045 for 10 grams at 0930 hours. September silver futures were trading 0.12 percent higher at Rs 62,713 a kilogram.

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Gold and silver traded steadily on Tuesday in the international markets. Both precious metals settled on a slightly positive note.

Gold December futures contract settled at $1731.70 per troy ounce, and silver September futures contract settled at $23.39 per troy ounce. Both the precious metals settled on a mixed note in the domestic markets.

The dollar index reached four-month highs and crossed 93 marks after the U.S. Senate passed a $1 trillion infrastructure bill on Tuesday.

“Gold and silver are expected to find some directions after today’s U.S. CPI data. Stronger than expected CPI data could push prices lower and vice versa. We expect gold prices could hold $1700 per troy ounce and silver prices could hold $23 per troy ounce in the international markets,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“At MCX, Gold has support at 45800-45550 and resistance at 46100-46330; silver is having support at 62200-61700 and resistance at 63100-63600 levels. We suggest buying in gold on dips around 45750 with a stop loss of 45550 for the target of 46100,” he said.

Technical indicators

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

Gold and Silver are both tradings in an oversold zone. Momentum indicator RSI also gave a positive divergence on four hourly as well on an hourly chart.

One big short-covering move is pending in bullion. Traders are advised to make buy positions in Gold and Silver for a short-term period. They should also focus on important technical levels given below for the day:

August Gold closing price 45,962: Support 1 - 45700, Support 2 - 45450, Resistance 1 - 46210, Resistance 2 - 46460.

September Silver closing price 62636: Support 1 - 62000, Support 2 - 61300, Resistance 1 - 63230, Resistance 2 - 63800.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International spot and futures gold prices found support at lower levels on Tuesday on some lingering doubts over the economic impact of the new Delta COVID-19 variant.

However, a rally in the dollar and bond yields capped further upside.

International spot and futures silver prices also rebounded from lows of the session and ended marginally higher on Tuesday.

Technically, MCX Gold October below 46000 will continue its correction up to 45700-45550 levels. Resistance is at 46050-46200 levels.

MCX Silver September is sustaining below 63000 below which could see 61000-59900 levels. Resistance is at 63300-64000 levels.

MCXBULLDEX May could trade on Bearish note within the range of 13700-14050 levels.

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