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Gold price today: Yellow metal futures rise to touch Rs 47,300; should you take positions now?

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Gold and silver rates rose tracking gains in global benchmarks amid weakness in the dollar. Strength in domestic equities however continued to aiD investors' appetite for risk, limiting the upside in the yellow metal. 

Gold price today: Yellow metal futures rise to touch Rs 47,300; should you take positions now?
Domestic gold and silver prices rose modestly on Tuesday tracking gains in global benchmarks amid weakness in the dollar, making precious metals more attractive for those holding other currencies. Gains in domestic equities however continued to aid investors' appetite for risk, limiting the upside in the yellow metal.
At 11:20 am, gold December futures on MCX were up by Rs 20 at Rs 47,311 per 10 grams. The December contract for silver was up by Rs 420 or 0.7 percent at Rs 63,686 per kilogram.
Globally, gold and silver rates rose supported by declines in the dollar and US bond yields, even as central banks move towards easing economic stimulus.
Spot gold and US futures for the yellow metal were up 0.7 percent each at $1,777.2 per ounce and $1,777.7 per ounce respectively. Silver was up 1.6 percent at $23.6 per ounce.
Gold is often considered a hedge against inflation. Reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost of holding bullion which pays no interest.
Back home, the rupee edged lower to 75.35 against the US dollar.
The dollar index -- which measures the greenback against six other currencies -- was down 0.3 percent at 93.6. 
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Should you take positions in gold and silver now?
According to Manoj Dalmia, Founder and Director at Proficient Equities, said bears in gold are slowly getting exhausted, and the yellow metal might be entering bullish territory. A reversal of the downtrend in gold will only be confirmed when the yellow metal futures close above the resistance level of Rs 47,650. "If that happens, one may buy gold for higher prices like 48,500 or beyond," he said. 
A breakout from the current levels looks reasonable given that November and December are traditionally bullish for the yellow metal, he said.
Ravi Singh, Vice President and Head of Research at ShareIndia, also has a positive outlook on gold, and suggests investors to go long on every correction.
He sees levels above Rs 47,300 as a buy zone for a target of Rs 47,500, and below Rs 47,100 as a sell zone for a target of Rs 46,900.
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