Gold was trading unchanged in the Indian market on October 4 morning even as prices hit a near two-week in the international market, as a weaker dollar offset bets that the Federal Reserve could begin the tapering its pandemic-era asset purchases soon.
On MCX, gold contracts were little changed at Rs 46,283 for 10 grams at 0928 hours on October 4. September silver futures were trading down 0.01 percent to Rs 60,541 a kilogram.
The yellow metal prices surged Rs 583 to Rs 46,434 per 10 gram on October 1, tracking a sharp spike in the global market overnight as the dollar dipped after US jobless claims rose for the third straight week. The yellow metal rose Rs 160, or 0.35 percent, in the previous week in the domestic market.
Gold and silver settled on a positive note in the international markets. Gold December futures contract ended at $1,761.20 a troy ounce, up by 0.24 percent and silver December futures contract settled at $22.56 a troy ounce, up 2.33 percent. Domestic markets ended mixed.
Gold is likely to test $1,788 and silver $23.20 again this week. Buy-on-dips strategy would work the best, said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.
Gold has support at $1,750-1,734, while resistance is at $1,774-17,88, Jain said. For silver, support is at $22.30-22, while resistance is at $22.88-23.20.
On MCX, gold has support at Rs 46,300-46,100 and resistance at Rs 46,720-46,900, while silver has support at Rs 60,000-59,500 and resistance at Rs 61,100-61,700, Jain said.
“We suggest buying gold on dips around Rs 46,300 with a stop loss of Rs 46,050 for the target of Rs 46,800, while silver can be bought around Rs 60,000 with a stop loss of Rs 59220 for the target of Rs 61,700,” he added.
Sandeep Matta, Founder, TRADEIT Investment Advisor
Gold seems to be consolidating around $1,750 amid a looming energy crisis. The price action has been promising, while renewed stagflation fears have fuelled positivity in the short-term momentum indicators.
On MCX, gold is also trading with renewed positivity at the crucial level of Rs 46,500. Market participants will particularly keep an eye on the US employment data for September month before taking a fresh view on a new strategic position in the precious metal.
We anticipate high volatility in the market and advise both investors and traders to follow these pivotal levels:
Key level for December gold contract– Rs 46,489
Buy zone above –Rs 46,500 for the target of rs 46,700-4,7000
Sell zone below– Rs 46,475 for the target of Rs 46,300-45,125
Ravi Singh, Vice President & Head of Research, ShareIndia
Due to a stronger dollar, gold was under pressure in the week gone by but the rise in crude prices is showing a probability of a sharp rise in global inflation also. High inflation may force the Fed to rethink its recent decision on bond tapering, hence gold may recover its losses this week.
Buy zone above—Rs 46,600 for the target of Rs 47,000
Sell zone below— Rs 46,300 for the target of Rs 45900
Amit Khare, AVP-Research Commodities, Ganganagar Commodity
Gold and silver showed follow-up upside movement on October 1. On MCX, December gold contracts closed nominal down by 0.03 percent at Rs 46,506 for 10 grams. While December silver futures closed at Rs 60,550, 1.56 percent up.
Gold and silver showed follow-up buying at lower levels, which may continue for the next two or three trading sessions.
Both metals are trading in the oversold zone for the last four-five trading sessions. Momentum indicator RSI is also pointing to the same and creating a strong positive divergence in 4-hourly as well as the daily chart.
Traders are advised to create fresh long positions in gold and silver on small dips near given support.
December gold closing price Rs 46,506 | Support 1-Rs 46,200 | Support 2- Rs 45,950 | Resistance 1- Rs 46,800 | Resistance 2-47,100.
December Silver closing price Rs 60550 | Support 1-Rs 59,750 | Support 2-Rs 59,000 | Resistance 1- Rs 61,325 | Resistance 2- Rs 62,100.
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