Gold price today: Yellow metal trades flat, Sell on rally towards Rs 49,550

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India Gold MCX February futures trade flat with a negative bias on Tuesday. Silver March futures also trade flat with a negative bias below Rs 65,500.

On the Multi-Commodity Exchange (MCX), February gold contracts were trading lower by 0.09 percent at Rs 49,298 for 10 grams at 0930 hours. March silver was trading 0.13 percent lower at Rs 65,470 a kilogram.

Experts are of the view that investors can use rallies towards 49,550 could be used to go short as further strength in the dollar index could push both the precious metals lower.

Gold and silver settled on a mixed note in the international markets amid strong rebound in the dollar index. Gold February futures contract were settled at $1850.80 per troy ounce and Silver March futures contract were settled at $25.28 per troy ounce.

Due to weakness in the rupee both the precious metals were settled on a positive note in the domestic markets. The dollar index showed a strong rebound from its around three years low due to rising bond yields in the United States, suggest experts.

“If the bond yields rose further it could support the dollar index despite a fresh fiscal stimulus package. According to the latest CFTC data, long positions are unwinding against the dollar from the last few trading sessions,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“We expect both the precious metals remain volatile and further strength in the dollar index could push both the precious metals lower. At MCX, Gold has support at 49055-48800 levels and resistance is placed at 49550-49800 levels. Silver has support at 64800-64000 and resistance at 66600-67200 levels,” he said.

Jain suggests selling the gold around 49550 with the stop loss at 49800 for the target of 49000 and selling in the silver around 66200 with the stop loss of 67100 for the target of 64500 levels.

News Source: Moneycontrol

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