Gold inched higher in the morning trade in the Indian market and was poised for a second weekly gain on October 22, as a softer dollar provided some respite against higher US bond yields and rising expectations that central banks could begin easing economic support.
On the Multi-Commodity Exchange (MCX), gold contracts were up 0.29 percent to Rs 47,541 for 10 grams at 9.31 am. December silver futures were up 0.39 percent to Rs 65,269 a kilogram.
Gold prices eased by Rs 79 to Rs 47,469 on October 21, tracking muted global cues. The precious metal was also pressured by a firm dollar and US treasury yields soaring above 1.67 percent.
Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart
The dollar index inched up as coal prices fell further bringing crude oil down. Gold also remained down as bond yield rose 1.68 percent.
Gold is trading in a narrow range and it is unable to sustain at upper levels. However, on the hourly chart, gold is trading above 100 and 200 EMA, which supports it at a lower range.
On MCX, gold has support at Rs 47,200 and resistance at Rs 47,700. Break on either side may give further direction to the metal.
Ravi Singh, Vice President & Head of Research, ShareIndia
MCX gold traded in a range-bound zone on October 21, withholding pressure from a stronger dollar and higher US treasury yields.
Traders are closely monitoring the remarks of Federal Reserve officials for clarity on the timeline of bond tapering.
Recently, two Fed officials said that the US central bank should begin winding down its stimulus measures but it was too early to hike interest rates. We expect higher volatility in gold due to increased demand during the festival season.
Buy zone – Rs 47,300 for the target of Rs 47,599
Sell zone below- Rs 47,100 for the target of Rs 46,900
Manoj Kumar Jain of Prithvifinmart Commodity Research
Gold and silver showed routine profit-taking on October 21. Both precious metals settled on a weaker note in the international market.
December gold futures contract settled at $1,781.90 a troy ounce with a loss of 0.17 percent and silver December futures contract were settled at $24.17 per troy ounce with a loss of 2.11 percent. Gold and silver are getting support from the slower economic recoveries post pandemic in the developed countries.
We expect gold and silver to continue to hold their key support levels and a dip would be a buying opportunity in both metals.
Gold is expected to test $1,800 in the upcoming sessions. It has support at $1,772-1,758 and resistance at $1,794-1,808, while silver has support at $23.94-23.70 and resistance at $24.44-24.70.
On MCX, gold has support at Rs 47,180-47,000 and resistance at Rs 47,600-47,850, while silver has support at Rs 64,700-64,220 and resistance at Rs 65,600-66,100 levels.
We suggest buying gold around Rs 47,250 with a stop loss of Rs 47,040 for the target of Rs 47,660 and silver around Rs 64,700 with a stop loss of Rs 64,200 for the target of Rs 65,800.
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