Gold Price Today Jumps Above Rs 47,000 After a Week, Silver Drops. Should you Buy Now?

Gold price in India crossed Rs 47,000-mark on Monday. The yellow metal had recovered after touching five-month low last week. On the Multi-Commodity Exchange (MCX), October gold contracts jumped 0.14 per cent to Rs 47,006 for 10 grams at 0920 hours on August 16. However, Silver was in the red zone on Monday. The precious metal September future dropped 0.06 per cent to Rs 63,203 on August 16.

In the international market, gold prices jumped near a one-week high on Monday. Spot gold was flat at $1,779.51 per ounce by 0100 GMT, having earlier hit a high since Aug. 6 at $1,780.82. US gold futures were up 0.2 per cent to $1,781.20, according to Reuters. Silver fell 0.2% to $23.69 per ounce. The US dollar index was a one-week low on Friday, making gold cheaper for holders of other currencies.

“Gold prices recovered strongly in the last few sessions underpinned by fears over rising Covid-19 cases along with softened concerns about the Fed’s urgency to pull back on monetary stimulus. Therefore, we expect gold prices to remain positive towards Rs 47,300 level in the short-term,” said ICICI Direct.

“Gold is right now weak, gaining support and hovering near lows. It’s still range bound, but not breached the lows. It’s a wait and watch to see if it breaks the support of Rs 45,000 for 10 gram levels or continues the momentary upside to Rs 47,500 for 10 gram. Same correlated as $1720 per ounce which could bring it down to $1580 per ounce or on the higher side beyond $1845 per ounce for an investment recommendation,” said NS Ramaswamy, Head of Commodities, Ventura Securities Ltd.

“We saw s short covering rally in gold and silver since last two trading sessions. But we can again see some following down movement in bullions as per current technical chart, Momentum indicator RSI also indicating the same on daily chart, So traders are advised to book their longs and can create some short positions in Gold and Silver near given resistance levels, traders should also focus important technical levels given below for the day : August Gold closing price Rs 46,940, Support 1 – Rs 46,750, Support 2 – Rs 46,500, Resistance 1 – Rs 47,100, Resistance 2 – Rs 47,260. September silver closing price 63238, Support 1 – Rs 62,350, Support 2 – Rs 61,500, Resistance 1 – Rs 63,700, Resistance 2 – Rs 64,125,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.

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