Gold Prices Today: Yellow metal to feel pressure from higher US bond yield prices, support around Rs 47,650

Gold prices were flat on January 18 in the international markets as a weaker dollar partially offset pressure from elevated US Treasury yields, which dim the appeal of a non-yielding bullion.

On the Multi-Commodity Exchange (MCX), gold contracts were marginally down 0.08 percent to Rs 47,877 for 10 gram at 9.19am. Silver futures shed 0.24 percent to Rs 61,751 a kilogram.

Prices of precious metals remained range-bound due US market holiday. Gold prices are looking firm and trading at positive territory indicating an upside momentum. Silver is having a 200 EMA support at Rs 61500 on the hourly chart. Gold has support at Rs 47750. Today’s trend in gold is likely to remain upside as prices are trading above their crucial support levels, said Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart.

Trading Strategy

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades mixed near $1820/oz holding on to recent gains. Gold remains supported by weaker US dollar, rising virus concerns, increasing inflationary pressure, geopolitical tensions relating to Russia and Middle-east, China’s monetary easing and mixed economic data from major economies. However, weighing on price are higher US bond yields which have jumped to 2-year high. ETF flows also show lack of investor participation. Gold may remain within recent $1780-1830/oz range but we may see selling pressure at higher levels if yields continue to rise.

Manoj Kumar Jain of Prithvi Finmart Commodity Research

Gold and silver traded sideways on Monday amid US markets were partially closed due to Martin Luther King day. Both the precious metals settled on a mixed note in the international markets. We expect precious metal prices to remain volatile in today’s session and continue to hold its support levels. Gold has support at $1804-1792 per troy ounce and resistance at $1830-1844 per troy ounce while silver has support at $22.80-22.55 per troy ounce and resistance at 23.40-23.70 per troy ounce.

At MCX, gold has support at Rs 47,770-47,650 and resistance at Rs 48,100-48,250 while silver has support at Rs 61,500-61,200 and resistance at Rs 62,300-62,700. We suggest buying silver around Rs 61,600 with a stop loss of Rs 61,100 for target of Rs 62,500.

Vidit Garg, Director, MyGoldKart

Yesterday US markets were closed hence we could witness a tight range bound movement despite of rate cut news from China. Technically, gold is showing support around $1817 while RSI is showing upward divergence while ADX is reflecting flat to upside movement. Traders can look to buy Spot Gold till $1818 and $1813 for target of $1828 while move above $1834 will force bears to cut their position and fuel more upside.

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