Gold Price Today at Rs 48,000; Still Rs 8,200 Down from All-Time High. Should you Buy?

Gold price in India has been hovering around Rs 48,000-mark on Friday. On the Multi-Commodity Exchange (MCX), the gold contracts rose 0.13 per cent to Rs 48,000 for 10 grams at 0925 hours on December 10. Silver remained flat on Friday, following the international trend. The precious metal future were down by 0.05 per cent to Rs 60,768 for 100 grams.

Globally, gold price edged higher on Friday. Spot gold rose 0.1 per cent to $1,776.23 per ounce by 0057 GMT while US gold futures gained 0.1 per cent to $1,778.60, according to Reuters. However, the yellow metal was all set for a fourth straight weekly fall as investors kept to the sidelines ahead of key US inflation data. The US inflation data will come on December 10. Bullion prices have plummeted 0.4 per cent so far in the week. Investors were worried that high inflation could prompt the US Federal Reserve to accelerate the pace of its asset purchase reductions. It must be mentioned that US jobless claims dropped to their lowest level in more than 52 years last week.

“International spot gold prices have edged higher on Friday morning in Asian trade as investors kept to the sidelines ahead of key US inflation data that could influence the Federal Reserve’s next policy move. According to a Reuters poll, US CPI is expected to rise to 6.8 per cent Y-o-Y, while Core CPI is expected to rise to 4.9 per cent Y-o-Y. Technically, if COMEX gold February sustains below $1780 level, it could continue to witness a bearish momentum up to $1770.50-1764.35 levels. Resistance is at $1785.65-$1794.55 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.

Domestic gold prices could start higher this Friday, tracking a positive start in the overseas prices.Technically, if MCX Gold February trades below Rs 47,990 level, it could fall up to the support zone at Rs 47,820-47,700 levels. Resistance zone is at Rs 48,110-48,280 levels.

On Silver price future, Iyer added, Technically, if COMEX Silver March trade below $22.110 level, it could witness a bearish momentum up to $21.745-$21.475 levels. Resistance zone is at $22.380-$22.745 levels. Domestic silver prices could start flat this Thursday morning. Technically, if MCX Silver March trades below Rs 60,975 level, it could witness a bearish momentum up to Rs 60,225-59,645 levels. Resistance zone is at Rs 61,550-62,305 levels.

“Gold prices this week remains under pressure due to higher US treasury yeilds and stronger dollar. Traders are looking ahead to the US November consumer price index report, which is expected to come in up 0.7 per cent from November and be up 6.7 per cent, year-on-year to get a clear understanding of the Fed’s plan of bond tapering. Buy Zone Above – Rs 48,000 for the target of Rs 48,300. Sell Zone Below – Rs 47,700 for the target of Rs 47,300,” said Ravi Singh, vice president and head of research, ShareIndia.

“We can see huge volatility in Bullions in december month. As per technical chart gold and silver both are trading at oversold zone and making bottom. Momentum indicator RSI also indicating the same in hourly as well as daily chart, The current levels are the best prices for short term investors, So short term investors are advised to create fresh longs for in small dips near given support levels, traders should focus important technical levels given below for the day: February gold closing price Rs 47,939, Support 1 – Rs 47,850, Support 2 – Rs 47,700, Resistance 1 – Rs 48,100, Resistance 2 – Rs 48,332. March Silver closing price Rs 60,798, Support 1 – Rs 60,000, Support 2 – Rs 59,340, Resistance 1 – Rs 61,200, Resistance 2 – Rs 61,550,” said Amit khare, AVP — research commodities, Ganganagar Commodity Limited.