Gold price today: Yellow metal sees gains, experts advise dipping

Gold price today: Yellow metal sees gains, experts advise dipping

Gold prices fell in India as investors preferred to book profits.

On the Multi-Commodity Exchange (MCX), October gold contracts traded down 0.07 percent at Rs 52,218 per 10 grams at 0915 hours. Silver rose 0.4 per cent to Rs 67,059 per kg.

As long as gold has a level of Rs 51,500, traders can look to buy the dip, experts say.

Spot Gold is still trading above the key support level of 9,900 for support. The dollar index fell on its rivals, making gold less expensive for those holding other currencies.

August 12 is roller-coaster day for gold and silver, as the two metals narrow the gap. Gold and silver fell 4 percent and 8 percent, respectively, in early trade.

But after the correction in the dollar index and weaker than UK GDP data, the precious metals both recovered from their lows. Gold and silver flattened in the international market.

On the MCX, gold recovered after hitting a low of Rs 49,955 and settled above Rs 52,200. Silver also touched a low of Rs 60,910, but recovered in the evening session and settled at Rs 67,000.

Manoj Jain, Director (Head – Commodity & Currency Research) at Prithvi Finmart

“Higher than expected US CPI and Core CPI data, weakness in the dollar index, and varied voices on Russian coronavirus vaccine supported precious metals at lower levels. We expect both the precious metals to remain volatile in Thursday’s session,” Manoj Jain, Director (Head – Commodity & Currency Research) at Prithvi Finmart said.

“At MCX, gold has crucial support at 51,500 on a closing basis, which is expected to be held. If prices sustain above 52,220, gold could extend the gains towards 52,550-52,800 levels again,” he said.

For MCX silver, 64,500 was the crucial support. If prices sustain above 67,200, gains could extend towards 68,500-69,800 levels, he said. “We suggest buy-on-dip in both the precious metals as weakness in the dollar index continues to support precious metals at lower levels,” Jain said.

Trading Strategy

Ravindra Rao, VP- Head Commodity Research at Kotak Securities

The Comex December gold deal did not change at 9,947 to oz after gaining 0.1% on the previous day. Gold trading in support from volatile US dollar, rising US-China tensions and rising virus cases ETF flows, lively financial data, rising US bond yields, signs of progress in vaccine development, and strength in the US equity market.

In the absence of fresh triggers, gold may witness volatile trade but general bias may be negative in the near term as high yields support the dollar.

Sriram Iyer, Senior Research Analyst at Reliance Securities

The international spot gold and silver ended with gains in volatile trade on August 12, as the stalemate over the second U.S. stimulus package continues to support the dollar’s fall and a secure paradise appeal.

The domestic bullion will boost profits on August 13, starting strongly on foreign prices. However, prices may fluctuate and witness consolidation in the coming sessions.

Technically, the MCX October gold resistance is at 52,600-53,350 and support is at the 51,700-50,550 level.

Disclaimer: The perspectives and investment tips are given in this section are the expert’s own and not that of the website or its management. We encourage clients to check with certified experts before taking any position in the stocks/shares mentioned.  

Related posts

DHFL to invite bids in various categories


IDFC Bank shares up; Bank shares gained: Stocks


Stock Market Feb 26th: 122 stocks hit 52-week lows on NSE