Yellow metal trades in green; next target seen at Rs 49400

India Gold MCX February futures trade in the green on December 11 while Silver trade mildly in the negative territory.

On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.18 percent at Rs 49,164 per 10 gram at 09:20 hours. March silver was trading 0.08 percent lower at Rs 63,481 per kilogram.

Experts are of the view that investors can buy the precious metal on dips near Rs 48,900, for a target of Rs 49,400, while Silver could be bought around Rs 63000, for a target of Rs 64500.

Gold and silver showed extreme volatility on Thursday but prices recovered from their lows after downbeat U.S. unemployment data and corrections in the dollar index.

Gold February futures contract settled on a slightly weaker note at $1837.40 per troy ounce while silver March futures contract settled at $24.09 per troy ounce. Both the precious metals settled on a mixed note in the domestic markets on Thursday.

“After downbeat U.S. unemployment claims, data dollar index also corrected and supported prices of both the precious metals. We expect both the precious metals remain steady and will show some strength in today’s session,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“At MCX, Gold has support at Rs 48900-48660 levels and the resistance is placed at Rs 49330-49550 levels. Silver has support at Rs 63000-62600 levels and resistance at Rs 64100-64700 levels,” he said.

Jain suggests buying in the gold around Rs 48900 levels with the stop loss of Rs 48600 for the targets of Rs 49400 levels and silver could buy around Rs 63000 levels with the stop loss of Rs 62400 for the targets of Rs 64500 levels.

-Published on Dec 11th, 2020