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Gold Prices Today: Yellow metal likely to remain volatile, buy on dips

Moneycontrol logo Moneycontrol 17-01-2022 Sandip Das
Gold Prices Today: Yellow metal likely to remain volatile, buy on dips © Moneycontrol Gold Prices Today: Yellow metal likely to remain volatile, buy on dips

Gold prices eased on January 17 in international markets as US Treasury yields gained on hawkish signals from the Federal Reserve and markets began to price in a sooner-than-expected reduction in the balance sheet of the American central bank.

On the Multi-Commodity Exchange (MCX), gold contracts were up 0.09 percent at Rs 47,823 for 10 gram at 9.25am. Silver futures added 0.16 percent to Rs 61,701 a kilogram.

Gold and silver last Friday settled on a slightly weaker note in the international markets. Gold February futures contract settled at $1,817.35 per troy ounce, down by 0.22%, and silver March futures contract settled at $22.99 per troy ounce, down by 0.76%. "We expect both the precious metals to remain volatile this week and continue to hold their support levels. Buy on dips strategy is recommended in gold and silver," said Manoj Kumar Jain of Prithvi Finmart Commodity Research.

Gold has support at $1804-1792, while resistance at $1830-1844 per troy ounce. Silver has support at $22.70-22.44 and resistance at $23.30-23.55 per troy ounce. At MCX, gold has support at Rs 47660-47550 and resistance at Rs 47900-48050 while silver has support at Rs 61220-60900 and resistance at Rs 62000-62350. "We suggest buying gold around Rs 47660 with a stop loss of Rs 47480 for target of Rs 47950 and silver around Rs 61300 with a stop loss of Rs 60900 for target of Rs 62300," he added.

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Trading Strategy

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

COMEX gold trades little changed near $1816/oz after last week’s 1.1 percent gain. Gold remains supported by weaker US dollar, geopolitical tensions, rising virus spread and disappointing US economic data. However, weighing on price is higher US bond yield and weaker investor interest as is evident from ETF flows. Gold continues to trade in the $1780-1830/oz range and this may not change soon with mixed factors in place. The general bias may be on the downside as optimism about US economy and Fed’s monetary tightening may create a floor for the US dollar.

Vidit Garg, Director, MyGoldKart

Gold prices dropped on January 14 as stronger dollar and higher US 10-year bond yields dulled the value of the yellow metal but the morning rate cut from China provided some support to metal prices. Retail sales data reflected that US citizens are postponing their purchases due to inflation because of short supply. Technically, spot gold is in the range of $1800-1830 and it needs to break these levels for further movement. Traders can look to buy spot gold above $1820 for target of $1829.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​

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