HomeMarket NewsCommodities NewsGold Price Today: Yellow metal futures back above Rs 48,100; should you take positions now?

Gold Price Today: Yellow metal futures back above Rs 48,100; should you take positions now?

MCX gold and silver futures declined amid a rising dollar overseas. Strength in domestic equities also dented precious metals' appeal as a safety bet.

Profile image

By CNBCTV18.com October 26, 2021, 4:38:32 PM IST (Updated)

Gold Price Today: Yellow metal futures back above Rs 48,100; should you take positions now?
Domestic gold and silver prices declined on Tuesday amid a strengthening dollar and a rise in equities, denting the safe-haven appeal of precious metals.


At 3:15 pm, Multi Commodity Exchange gold futures for the month of December quoted at Rs 48,129 per 10 grams, down by Rs 71 or 0.2 percent from their previous close. The December contract of silver was at Rs 65,670 per kilogram, down by Rs 469 or 0.7 percent from its previous close.

ALSO READ: Gold, silver, nickel, coriander and other commodity bets for short-term gains

Globally, gold and silver eased amid gains in the dollar and the US bond yields. Investors assessed central banks’ likely response to growing inflationary pressure ahead of key policy meetings due this week.

Spot gold was last seen trading down 0.2 percent at $1,803.4 per ounce. US gold futures were down 0.1 percent at $1,804.8 per ounce. 

Silver was down one percent at $24.3 per ounce.

Gold is often considered a hedge against inflation, though reduced stimulus and interest rate hikes push government bond yields up, denting the bullion’s appeal.

ALSO READ: All you need to know about Sovereign Gold Bond scheme

Back home, the rupee edged higher to 75.03 against the US dollar during Tuesday's session.

The dollar index - which measures the greenback against six other currencies - rose as much as 0.2 percent to 93.95, in a bounceback after a series of losses recently. Weakness in the greenback makes the precious metals more attractive for holders of other currencies.

ALSO READ: Expect festival season to be best in 2 years for gold, says Somasundaram PR of World Gold Council

On Dalal Street, benchmark indices Sensex and Nifty50 extended gains to a second straight day, led by strength in financial and oil & gas stocks. Typically, gains in equities dent the safe-haven appeal of bullion and vice versa. Catch latest market updates here

Should you take positions now?

Gold and silver are expected to remain positive, and any decline in the prices to give investors a buying opportunity, said Manoj Kumar Jain, Director-Head of Commodity Research at Prithvi Finmart.

The global gold price could test $1,832 per ounce this week, he said.

ALSO READ: Is Bitcoin replacing gold as hedge against inflation?

He sees support for MCX gold futures at Rs 48,000-47,860 and resistance at Rs 48,440-48,700. For silver, he sees support at Rs 65,700-65,220 and resistance at Rs 66,660-67,200.

Jain suggests buying gold around Rs 48,050 for a target of Rs 48,500 with a stop loss at Rs 47,880, and silver around Rs 65,800 for a target of Rs 67,000 with a stop loss at Rs 65,200.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!