MUMBAI (Commodity Online): Gold futures on India's MCX is exhibiting a flat trend. Overall trend looks bullish for bullion prices, but some correction is expected as US Consumer Price Index data scheduled for evening may turn out to be slightly negative for prices.

Intra-day traders may use dips to buy more of bullion, Commodity Online analysts say.

Gold futures are little changed at Rs.30869 per 10 grams as of 04.57 PM IST on India's MCX. Silver, meanwhile was seen trading at Rs.59352, a loss of 0.19% as of 04.50 PM IST.

MCX gold is having a good support at Rs.30700 and resistance at 31000 levels. In case of silver, good support is seen at Rs 58800 and resistance at Rs 59600.

“Intra-day traders are advised to take a long position in gold February futures around Rs.30800 with stop loss of Rs.30700 and wait for the target near Rs.30950 for the day. In case of silver, traders are advised to take a buying position in March futures around Rs 59000 with stop loss of Rs 58700 and wait for the target Rs 59500.” said Ankush Kumar Jain, Research Analyst at Commodity Online.

“Short sellers are advised to take a fresh short sell only below Rs.30700 in gold and Rs.58700 in silver for intra-day.” he cautioned.

Short-term trend

For short term to medium term, gold and silver looks positive and every correction is a good opportunity for those who want to take a long position in bullion.

“For the short term to medium term, gold is having good support Rs.30500 even as silver is having support at Rs.57700. Short-term traders are advised to take a long position in gold and silver on every dips with the stop loss of support levels just mentioned.” Ankush counselled.

Gold and Silver futures opened positive in the morning session but lost all the gains as profit booking set-in in the international markets.

Debt-ceiling

On a latest note, the Republicans in US Congress have started to push for prioritizing payments, if at all the situation of debt default arises. Pay the debt first and then only pay your soldier is the stand, analysts say.

“Payment prioritization doesn't stop payments, it just delays them. Then the aggrieved party sues the government, and probably wins, and it turns into a bloody mess," Keith Hennessey, now an economist at Stanford, said in a blog post this week and was quoted by Reuters as saying.

The White House has ruled out any negotiations when it comes to the debt ceiling issue. The US Congress is divided on the debt-ceiling issue and the Republicans are seeking spending cuts in return for raising the debt-ceiling.

"Congress is not being asked to give permission for future borrowing, but for the authorization to borrow to fund programs that Congress itself has already approved.”--Port Land Press Herald, said in an opinion piece recently.