Gold slipped in Indian markets on December 31 following a muted trend in international spot prices. On the Multi-Commodity Exchange (MCX), February gold contracts were trading lower by 0.07 percent at Rs 50,098 for 10 grams at 0920 hours. March silver was trading 0.14 percent lower at Rs 68,517 a kilogram.
Experts are of the view that investors can buy the dip towards Rs 49,950 for an upside target of Rs 50,550 in the near term. The support for silver is at Rs 67,800.
Gold and silver surged on December 30 amid weakness in the dollar index and worries over the fast-spreading new coronavirus strain in the UK and rest of the world.
Gold and silver settled on a positive note in the international markets. Gold February futures contract settled at $1,893.40 a troy ounce, while March silver contract settled at $26.57 a troy ounce.
At home, the February gold futures contract settled at Rs 50,135 for 10 gram and March silver futures contract settled at Rs 68,614 a kilogram.
Gold and silver prices gained as the dollar index continued to slide and dropped to nearly a three-year low and supported both the precious metals, experts said.
“Safe-haven buying is also seen in both the precious metals due to the fast spread of the new virus strain in the United Kingdom and the rest of the world. We expect both the precious metals to remain volatile in today’s session ahead of the New Year holiday and gold could test $1,900 per troy ounce levels again,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“Gold has support at $1,884-1,870 and resistance is placed at $1,908-1,922. Silver has support at $26.22-25.88 per troy ounce and resistance at $26.84-27.20. On MCX, gold has support at Rs 49,920-49,700 and resistance at Rs 50,330-50,580 levels. Silver has support at Rs 67,800-67,400 levels and resistance at Rs 69,200-70,000 levels,” he said.
Jain suggests buying in gold at around Rs 49,950 with the stop loss of Rs 49,700 for the target of Rs 50,550 and buying in the silver at around Rs 68,000 with a stop loss of Rs 67,400 for the target of Rs 69,500.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex gold was trading 0.4 percent higher near $1,900 after gaining 0.6 percent the previous day. Gold was trading higher supported by persisting weakness in the dollar, rising virus cases, mixed economic data from major economies and the US stimulus.