Gold prices in India rose on Tuesday tracking the international peers. On the Multi-Commodity Exchange (MCX), August gold contracts increased 0.34 per cent higher to Rs 47,459 for 10 grams at 0940 hours on July 6. September silver futures were trading 0.37 per cent higher at Rs 70,298 a kilogram.
In the international market, gold prices touched a new high in nearly three weeks. Spot gold was up 0.4% at $1,798.46 per ounce, as of 0315 GMT, its highest since June 17. US gold futures rose 0.8% to $1,798.10 per ounce, according to Reuters. The dollar lowered 0.1%, moving further away from a three-month high hit last week. Investors are keenly waiting for minutes from the US Federal Reserve for clarity on monetary policy scheduled on Wednesday.
“International spot gold and silver prices have started flat this Tuesday morning in Asian trade. Investors will be looking out for information on when the FOMC could taper its asset purchases and increased US interest rates. Technically, LBMA Gold above $1790 level will continue its bullish momentum up to $1805-$1820 levels. Support is at $1783-$1775 levels. Investors will look to cues from the language on inflation. LBMA Silver holds a 200-Daily Moving Average which is placed at $25.70 level above which will continue its Bullish momentum & further could see $26.55-$27.40 levels. Support is at $25.80-$24.60 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver prices could start flat this Tuesday morning, tracking overseas prices. On the domestic front, MCX Gold August holds a strong support near Rs 47,150-47,000 levels. Resistance is at Rs 47,400-47,700 levels. MCX silver September above Rs 69,000 levels will continue its bullish momentum up to Rs 70,700-71,400 levels. Support is at Rs 69,600-68,300 levels,” Iyer added.
“Bearish bets continue to dominate the gold market even as some hedge funds retest some of the investment waters as the market looks for some support at a two-month low, according to the latest trade data from the Commodity Futures Trading Commission (CFTC). The CFTC disaggregated Commitments of Traders report, for the week ending June 29, showed money managers increased their speculative gross long positions in Comex gold futures by $5,400 contracts to $115,438. At the same time, short positions rose by $6,554 contracts to $54,056. The gold market has seen its net length drop for four consecutive weeks and now stands at $61,382 contracts, down 3% from the previous week and is at its lowest level since early May,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
“Gold and silver are giving gap up opening as per current comex prices, Technical chart indicating some profit booking at higher levels. So traders are advise to book their longs at higher opening prices and can make some short position in gold, silver near given resistance levels, traders should also focus important technical levels given below for the day: August gold closing price Rs 47,299, Support 1 – Rs 47,200, Support 2 – Rs 47,000, Resistance 1 – Rs 47,800, Resistance 2 – Rs 48,100. September silver closing price Rs 70,039, Support 1 – Rs 69,500, Support 2 – Rs 68,900, Resistance 1 – Rs 70,700, Resistance 2 – Rs 71,300,” he added.
“Range bound bullish behavior of the gold is continue and seems has found its near term support around $1750 an ounce. Central banks of many countries are unveiling their plans to increase gold holding in near term as a fundamental measure against inflationary and other forms of financial risks. The higher high formation on daily basis is encouraging and seems yellow metal is ready to breach $1800 mark very soon,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold on MCX replicated the same behavior as global market and closed on positive note. We are positive on gold for next few days and price surge is expected on technical parameters. Key level for Gold August contract – Rs 47,325. Buy zone above – Rs 47,335 for the target of Rs 47,440-47,600. Sell zone below – Rs 47,300 for the target of Rs 47,190-47,100,” Matta added.
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