Business strategy

Gold Price Today at Rs 46,550 Ahead of Festivals. ‘Investors Must Create Fresh Long Positions’

Gold price in India remained flat on Monday. The yellow metal price has been hovering between Rs 46,000 and Rs 47,000 since the last two weeks. On the Multi-Commodity Exchange (MCX), December gold future was trading flat at Rs 46,550, up 0.09 per cent per 10 grams at 1000 hours on October 4. Silver, however witnessed an increase on Monday. The precious metal price jumped 0.17 per cent to Rs 60,653 on October 4.

In the international market, gold price started flat on Monday. The dollar and the benchmark 10-year yield pulled lower last week, encouraging demand for the metals. Helping gold’s appeal, European and Asian stocks fell on worries about inflation and possible slowdown in growth.

“Data from the CFTC showed that speculators cut net long positions in COMEX gold futures and options by 19,471 contracts to 42,123, while speculators raised net long positions in COMEX silver futures and options by 2,616 contracts to 3,518 in the week to September 28. International gold and silver prices have started flat to marginally higher this Monday morning in Asian trade as a weaker dollar offset bets that the US Federal Reserve could begin tapering its pandemic-era asset purchases soon,” said Sriram Iyer, senior research analyst at Reliance Securities.

“Technically, if LBMA Gold continues to remain above $1755 the markets could witness a continuation of the build-up in bullish momentum up to the resistance near $1768-$1795 levels. Support is at $1753-$1745 levels. Technically, if LBMA Silver continues above $22.00 level the markets could continue its upside momentum up to $23.60-$24.00 levels. Support is at $21.75-$21.00 levels,” he added.

“Domestic gold and silver prices could start flat to marginally higher this Monday morning, tracking overseas prices. If MCX gold December trades above Rs 46,500 levels, the markets could continue its bullish momentum up to Rs 46,700-46,900 levels. Support is at Rs 46,300-46,100 levels. Technically, if MCX Silver December trades below Rs 60,000 levels the markets could continue its bullish momentum up to Rs 61,300-62,500 levels. Support is at Rs 59,700-55,900 levels,” Iyer further mentioned.

December gold futures were last up $5.91 at $1,759.80. December Comex silver was last up $0.42 at $22.547 an ounce. The key outside markets yesterday see the US dollar index near steady after hitting a 12-month high overnight. Nymex crude oil futures were higher and trading around $75.58 a barrel. Meantime, the 10-year US Treasury note yield is presently fetching around 1.47 per cent, said Amit khare, AVP-Research Commodities, Ganganagar Commodity Limited.

Both metals are trading at oversold zone since last 4-5 trading sessions. Momentum indicator RSI also indicating the same and creating a strong positive divergence in four hourly as well as daily chart. So traders are advised to create fresh long positions in gold and silver in small dips near given support, traders should focus important technical levels given below for the day: December Gold closing price Rs 46,506, Support 1 – Rs 46,200, Support 2 – Rs 45,950,  Resistance 1 – Rs 46,800, Resistance 2 – Rs 47,100. December Silver closing price 60550, Support 1 – Rs 59,750, Support 2 – Rs 59,000, Resistance 1 – Rs 61,325, Resistance 2 – Rs 62,100, he added.

“Due to stronger dollar, gold price was under pressure last week. But, the rise in crude oil prices is showing a probability of sharp rise in global inflation also. High inflation may force Fed to rethink over its recent decision in regard to bond tapering. Hence, Gold may recover it’s 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 45,900,” said Ravi Singh, Vice President & Head of Research ShareIndia.

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