Gold traded lower on October 5 because the dollar gained strength but fears that the increase in energy prices could dampen economic appetite activity for risk assets and keep the bullion approach more than one peak in the previous session.
At MCX, the gold contract fell 0.25 percent at Rs 46,768 for 10 grams at 0926 hours. September Silver Futures traded lower by 0.54 percent to Rs 60,625 per kilogram.
Gold prices subsided marginal at Rs 40 to Rs 46,394 for 10 grams on October 4, tracking weak global cues, ETF OUT, firm equity market and increased treasury results. However, the negative side in metals is limited by depreciation of rupees and weaknesses in the dollar index.
The dollar, which moves opposite to the price of gold, down 0.27 percent because crude oil rose 3 percent due to higher demand. Strong crude oil can provide further pressure on the dollar, which is likely to support the price of precious metals.
On MCX, gold has support at 46,600 and resistance at 47,300, said Abhishek Chauuhan, Head of Commodity & Currency in Investmart Swastika.
Gold and silver were obtained on October 4 amid a selloff in the US equity market. Both precious metals settled with positive records on the international market.
We hope the two metals remain volatile this week and continue to hold their support level. Excessive purchasing strategies continue to work in precious metals.
Gold has support at $ 1.752-1,740 per troy ounce and resistance at $ 1,778-1,792, while silver has support at $ 22.44-22.20 a troy ounce and resistance at $ 22.88-23.10.
At MCX, gold has support at Rs 46,660-46,480 and resistance at Rs 47,050-47,220, while silver has support at Rs 60,600-60,100 and resistance at Rs 61,400-61,900.
We suggested buying gold on dips around Rs 46,660 with a stop 46,380 for RS 47,100 target.
Sandeep Matta, Founder, Tradeit Investment Advisor
Precious metals surged on October 4 after OPEC + talked about increasing oil production in stages, ignoring the call from the US and India to increase output as the world economy recovered.
The benchmark of the US equity has seen selling after OPEC + comments, while gold, enjoys the status of safe haven, is a key recipient.
At MCX, gold gets a price action back on the Bulls side as an increase in US debt, lower dollars, results and chaos of global equity supporting metals.
Key level for December gold contract-rs 46.730beli zone above – Rs 46,500 for RS Target 46,970-47,135
Selling Zone below 46,700 for RS Target 46.5-46,303
Ravi Singh, Vice President & Research Head, Sharindia
Gold traded higher the previous day. The government’s source said that India’s gold imports in September jumped 658 percent of the bottom basis last year, as a correction in local prices to the lowest level in almost six months pushing jewelry to increase purchases for the upcoming festival season.
Amit Khare, AVP Research Commodities, Ganganagar Commodities
On October 4, gold and silver showed a reverse movement for the third consecutive session. We see follow-up to buy gold and silver at a lower level, because both metals are formed below.
Traders are advised to make a new long position in gold and silver on a small dip near the support provided and must focus on this technical level for that day:
December closing price of December; Rs 46,887 | Support 1 – RS 46,500, Support 2- RS 46300 | Resistance 1-RS 47,060 and Resistance 2-RS 47,365.
Price of Silver Closure December: RS 60953 | Supports 1-RS 60,300 | Supports 2-RS 59,700 | Resistance 1-RS 61,560 | Resistance 2-Rs 62,500.
