India Gold MCX February futures trades flat on Tuesday, following muted trend seen in the international spot prices as cautious investors focused on key central bank meetings this week.

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The US central bank is set to begin its two-day monetary policy meeting on Tuesday, with investors expecting the Fed to announce wrapping up its bond purchases sooner than expected, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.13 per cent higher at Rs 48,227 per 10 grams at 0915 hours. The March Silver futures were trading 0.20 per cent lower at Rs 61,460 a kilogram.

Gold and silver gained on Monday ahead of the US Federal Reserve policy meeting and decline in the US bond yields. Both the precious metals settled on a positive note in the international markets.

Gold February futures contract settled at $1788.30 per troy ounce, and silver March futures contract settled at $22.33 per troy ounce. Domestic markets also settled on a positive note.

Both the precious metals gained on Monday amid inflation worries, weakness in the US equity markets and decline in the benchmark 10-year U.S. bond yields.

“Market is expecting faster tapering from the U.S. Federal Reserve in this policy meeting and guidance on the rate hikes looking to the hotter than expected inflation. We expect both the precious metals to remain volatile in today’s session,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1774-1758 per troy ounce and resistance at $1800-1812 per troy ounce; silver has support at $22.10-21.84 per troy ounce and resistance at $22.66-22.88 per troy ounce.

“At MCX, Gold has support at 48100-47880 and resistance at 48480-48650; silver is having support at 61220-60900 and resistance at 61900-62200,” he said.

Jain suggests buying gold on dips around 48100 with a stop loss of 47880 for the target of 48500.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start higher this Monday, tracking a positive start in the overseas prices.

Technically, MCX Gold February resistance zone is at 48390-48480 levels. Support zone is at 48175-48045 levels.

International spot silver prices have started flat this early Tuesday morning in Asian trade; however, upside could be capped as dollar continues to extend gains.

Technically, COMEX Silver March support zone is at $22.180-$22.035 levels. Resistance zone is at $22.450-22.575 levels.

Domestic silver prices could start with gains this Monday morning, tracking a positive start in the overseas prices.

Technically, MCX Silver March support zone is to 61255-60925 levels. Resistance zone is at 61830-62075 levels.

Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades in a narrow range near $1785/oz after a 0.2% gain in previous session. Gold trades in a range as support from virus concerns, stress in China’s property sector, increased geopolitical tensions and pause in equity market gains is countered by expectations that Fed may tighten its monetary policy which has kept US dollar index supported.

Gold ETF investors are also on sidelines awaiting fresh triggers. Gold may remain rangebound ahead of Fed decision but monetary tightening expectations may keep pressure on prices

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)