Last week, pressure was seen in the dollar index, leading to a rise in prices of gold and silver and this trend is likely to continue this week as well.
“In MCX, gold has resistance at Rs 48,500 and above that it may test the levels of Rs 49,000 whereas support can be seen at Rs 47,200.
Gold continues to struggle to sustain above the $1800/oz level which shows lack of confidence however with increasing challenges to global economy, prices may remain supported.
We expect both the precious metals to remain positive this week and any dip in the prices would be a buying opportunity in both the precious metals.
We suggest buying gold around Rs 47,660 with a stop loss of Rs 47,440 for the target of Rs 48,100 and silver around Rs 65,200 with a stop loss of Rs 64,700 for the target of Rs 66,100.
The US Bureau of Labor Statistics recently released the inflation data for September concerning the Consumer Price Index gained 0.4 percent, crossing the expectations.