Gold was trading a tad higher in India on January 6 morning even as prices remained unchanged in the international market as cautious investors positioned themselves for key US jobs data. The safe-haven metal, however, was on track for a third straight weekly gain.
At 9.48 am, gold was trading 0.14 percent higher on the Multi Commodity Exchange (MCX) at Rs 55,365 for 10 grams. Silver was up 0.52 percent at Rs 68,429 a kilogram.
Spot gold held its ground at $1,833.36 per troy ounce, as of 0035 GMT. For the week, so far, it is up about 0.5 percent. US gold futures were 0.2 percent lower at $1,837.40.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd
Gold and silver prices ended sharply lower on January 5 due to profit-taking after the recent upsurge that pushed the yellow metal to a six-month high earlier this week and silver to an eight-month peak.
A strong rally in the US dollar index and US treasury yields also put pressure on the precious metals. The US ADP national employment report showed 235,000 jobs were created in December, compared to the consensus forecast of up 153,000.
The gold market saw prices falter following the stronger-than-expected data, which also helped a rally in the dollar index and pushed US treasury yields higher.
Traders and investors will now focus on the US December employment situation report from the labour department expected later in the day.
Technically, gold has support at $1,818-1,805 while resistance is at $1,845-1858. Silver has support at $22.95-22.72, while resistance is at $23.55-23.72.
In rupee terms, gold has support at Rs 55,040-54,850, while resistance is at Rs 55,440, 55,580. Silver has support at Rs 67,650-67,280, while resistance is at Rs 68,620–68,980.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
On January 5, gold and silver settled weaker in the international market. The February gold futures contract settled at $1,840.60 per troy ounce, down 0.99 percent and the March silver futures contract settled at $23.42 per troy ounce, down by 2.36 percent. Domestic markets also settled on a weaker note.
We expect gold and silver prices to remain volatile on January 6 ahead of the US job reports and face resistance at higher levels.
Gold has support at $1,822-1,810, while resistance is at $1,854-1,868. Silver has support at $23.10-22.84, while resistance is at $23.70-24.
On MCX, gold has support at Rs 55,050-54,800 and resistance at Rs 55,500-55,750, while silver has support at Rs 67,550-67,100 and resistance at Rs 68,660-69,200.
We suggest selling gold on the rise at around Rs 55,500 with a stop loss of Rs 55,750 for a target of Rs 55,050.
(With agency inputs)Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.