0

0

0

0

0

0

0

0

0

Gold Price Today: Yellow metal steady near Rs 47,150; should you take positions?

Mini

Gold and silver prices rose marginally as the dollar held near a one-year peak. A pause in domestic equities after benchmarks broke a series of records continued to dent the safe-haven appeal of gold.

Gold Price Today: Yellow metal steady near Rs 47,150; should you take positions?
Domestic gold and silver prices rose marginally on Tuesday tracking global benchmarks as a firm dollar kept the precious metals less appealing for holders of other currencies. A pause in domestic equities after benchmarks broke a series of records continued to dent the safe-haven appeal of gold, keeping the upside in check.
At 11:45 am, the December contract of gold futures on MCX quoted at Rs 47,143 per 10 grams, up Rs 92 or 0.2 percent compared with its previous close. Silver also rose, with the December contract up 0.1 percent at Rs 61,787 per kilogram.
Globally, gold registered mild gains as the dollar held firm on expectations that the Federal Reserve will announce a tapering of its bond purchases next month.
Gold is seen as a hedge against inflation and currency debasement likely from the widespread stimulus. The tapering of stimulus by the US central bank could tackle both those conditions, diminishing bullion’s appeal.
Spot gold was up 0.4 percent at $1,761.9 per ounce, and US gold futures up 0.3 percent at $1,761.4 per ounce. Silver was also up 0.4 percent at $22.67 per ounce.
ALSO READ
Back home, the rupee declined marginally to 75.42 against the US dollar in early deals on Tuesday, weighed down by strength in the dollar and rising crude oil prices.
The dollar index -- which gauges the strength in the greenback against six other currencies -- was down 0.1 percent at 94.28, not far from a one-year high.
On Dalal Street, benchmark indices took a breather after scaling a series of record highs. Weakness in IT, metal and oil & gas shares pulled the market lower. Catch LIVE Updates here
What analysts say
Manoj Kumar Jain, Director, Head-Commodity and Currency Research at Prithvi Finmart, expects bullion rates to hold on to their support levels, with support from concerns on the global growth front due to the energy crisis.
He sees support for gold at $1,748-1,734 per troy ounce and resistance at $1,764-1,778 per ounce. For silver, he sees support at $22.44-22.20 per ounce, and resistance at $22.88-23.10 per ounce.
"Looking at rising bond yields, we cannot expect extensive moves in gold," said Manoj Dalmia, Founder and Director of Proficient Equities.
Should you take positions?
Dalmia suggests a buy-on-dips strategy to accumulate gold as the festive season picks up, for targets of Rs 49,784 and Rs 52,603.
Jain recommends buying gold futures on dips to around Rs 46,850 for a target of Rs 47,200 with a stop loss at Rs 46,650.
next story