Gold Price likely to gain amid rising crude, weakness in dollar Today
The dollar, which moves opposite to gold, fell 0.27 percent on October 4 as crude gained 3 percent due to higher demand. Strong crude may put pressure on the dollar, which is likely to support the prices of precious metals
Gold was trading lower on October 5 as the dollar gained strength but concerns that rising energy prices could dampen economic activity dented appetite for riskier assets and kept bullion close to more than one-week peak hit in the previous session.
On MCX, gold contracts were down 0.25 percent at Rs 46,768 for 10 grams at 0926 hours. September silver futures were trading lower by 0.54 percent to Rs 60,625 a kilogram.
Gold prices eased marginally by Rs 40 to Rs 46,394 for 10 gram on October 4, tracking weak global cues, ETF outflows, firm equity markets and rising treasury yields. However, the downside in the metal was capped by rupee depreciation and weakness in the dollar index.
The dollar, which moves opposite to gold prices, fell 0.27 percent as crude gained 3 percent due to higher demand. Strong crude may put further pressure on the dollar, which is likely to support the prices of precious metals.
On MCX, gold has support at 46,600 and resistance at 47,300, said Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart.
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Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research
Gold and silver gained on October 4 amid sell-off in the US equities markets. Both precious metals settled on a positive note in the international markets.
We expect both metals to remain volatile this week and continue to hold their support levels. The buy-on-dips strategy continues to work in both precious metals.
Gold has support at $1,752-1,740 a 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.
On 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 suggest buying gold on dips around Rs 46,660 with a stop loss of Rs 46,380 for a target of Rs 47,100.
Sandeep Matta, Founder, TRADEIT Investment Advisor
The precious metal jumped on October 4 after the OPEC+ talked about increasing oil production gradually, ignoring the calls from the US and India to boost output as the world economy recovers.
US equity benchmarks have saw selloff after OPEC+ comments, while gold, enjoying the status of safe haven, was the key beneficiary.
On MCX, gold is getting the price action back on the bulls’ side as rising US debt, lower dollar, yields and global equity turmoil favour the metal.
Key level for gold December contract–Rs 46,730Buy zone above – Rs 46,500 for the target of Rs 46,970-47,135
Sell zone below– Rs 46,700 for the target of Rs 46,505-46,303
Ravi Singh, Vice President & Head of Research, ShareIndia
Gold traded higher the previous day. A government source said that India's gold imports in September soared 658 percent from last year's lower base, as a correction in local prices to the lowest level in nearly six months prompted jewellers to step up purchases for the upcoming festival season.
Amit Khare, AVP-Research Commodities, Ganganagar Commodity
On October 4, gold and silver showed upside movement for a third consecutive session. We saw follow-up buying in gold and silver at lower levels, as both metals formed a bottom.
Traders are advised to create fresh long positions in gold and silver on small dips near the given support and should focus on these technical levels for the day:
December gold closing price; Rs 46,887 | Support 1 – Rs 46,500, Support 2- Rs 46300 |Resistance 1-Rs 47,060 and Resistance 2-Rs 47,365.
December silver closing price: Rs 60953 | Support 1-Rs 60,300 | Support 2-Rs 59,700 | Resistance 1-Rs 61,560 | Resistance 2-Rs 62,500.
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