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Gold Price Today: Yellow metal futures back above Rs 47,500; should you take positions now?

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MCX gold futures touched the Rs 47,550 mark amid a softening dollar. Losses in equities also boosted the safe-haven appeal of bullion.

Gold Price Today: Yellow metal futures back above Rs 47,500; should you take positions now?
Domestic gold and silver prices rose on Thursday as equities moved further away from recent record highs and the dollar eased overseas, making the precious metals more attractive for holders of other currencies.
At 11:45 am, gold December futures on MCX were up by Rs 20 at Rs 47,519 per 10 grams, having risen to as high as Rs 47,580 earlier in the day.
The December contract for silver was up by Rs 253 or 0.4 percent at Rs 65,860 per kilogram, after touching Rs 65,925 at the day's highest point so far.
Globally, gold and silver rates continued to rise for the third day in a row amid weakness in the US dollar.
Spot gold was trading 0.3 percent higher at $1,786.6 per ounce at the last count, while US gold futures were up 0.1 percent at $1,787.1 per ounce. Silver was up 0.2 percent at $24.4 per ounce.
Analysts closely monitored remarks from Federal Reserve officials. On Wednesday, two officials said that the US central bank should begin winding down its stimulus measures, but it is too early to hike interest rates.
Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion that pays no interest.
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Back home, the rupee edged higher to 74.85 against the US dollar, a day after hitting a nearly two-week closing high of 74.88.
The dollar index - which measures the greenback against six other currencies - declined as much as 0.1 percent to 93.5. 
On Dalal Street, benchmark indices Sensex and Nifty50 suffered sharp losses, continuing to fall for a third straight day. Losses in IT, consumer durables and pharmaceutical shares pulled the market lower. Catch latest market updates here
Typically, gains in equities dent the safe-haven appeal of bullion and vice versa.
Analysts await US jobs data due later in the day for cues.
Should you take positions now?
Both precious metals are expected to remain volatile with the yellow metal expected to test the $1800 per ounce level once again, said Manoj Kumar Jain, Director-Head of Commodity Research at Prithvi Finmart.
Back home, MCX gold futures have support at Rs 47,240-47,055 and resistance at Rs 47,660-47,850, he said. For silver, support is seen at Rs 65,220-64,700 and resistance at Rs 66,100-66,660, said Jain, who recommends buying gold futures around Rs 47,350 for a target of Rs 47,770 with a stop loss at Rs 47,180.
"As the Indian festive season and the marriage season has started, we may see stable buying in gold and silver... We advise traders to create fresh long positions in gold and silver on dips," said Ravi Singh, Vice President and Head of Research at ShareIndia.
He sees levels above Rs 47,400 as a buy zone for a target of Rs 47,650, and below Rs 47,200 as a sell zone for a target of Rs 47,000.
Amit Khare, AVP-Research Commodities at Ganganagar Commodity, expects MCX gold futures to meet resistance at Rs 47,675 followed by Rs 47,900, and find support at Rs 47,300 and then Rs 47,000. For the white metal, he sees support at Rs 65,200 and Rs 64,800, and resistance at Rs 66,000 and then Rs 66,600.
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