Gold prices were flat near a seven-week low on Wednesday pressured by a rise in the dollar and US Treasury yields on growing expectations of an earlier-than-anticipated interest rate liftoff.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.12 percent at Rs 45,910 for 10 grams at 0919 hours. September silver futures were up by 0.14 percent at Rs 60,551 a kilogram.
The Securities and Exchange Board of India (SEBI) has set the ball rolling for a Gold Exchange and approved the creation of a Social Stock Exchange (SSE). The board approved the framework for Gold Exchange under the SEBI (Vault Managers) Regulations, 2021.
“The precious metal along with equity markets tumbled after the comment of US Treasury Secretary Janet Yellen on not raising the debt ceiling in time. Gold registered double-digit fall breaching the key levels of $1750/oz and seems heading towards $1700/oz in near future,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
“Gold outlook is not investment-friendly currently, however, we are reaching in the price zone where physical buying can be initiated for the extended period while setting aside the price action. The key level for gold August contract is Rs 45,871 with buy zone above Rs 45,900 for the target of Rs 46,150-46,285 while sell the zone is below Rs 45,855 for the target of Rs 45,725-45,500,” he added.
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Trading Strategy
Amit khare, AVP- Research Commodities, Ganganagar Commodity
Gold and silver prices were lower at midday, but up from their daily lows. Gold hit a six-week low in overnight trading. A three-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $1,788.40.
Yesterday we have seen some bottom buying in gold and silver, which may continue for next few trading sessions, both metals are trading at oversold zone. Momentum indicator RSI is also indicating the same and creating a strong positive divergence in 4-hourly as well as daily chart, which means any time we can see a good short covering rally in both metals, So traders are advised to create fresh long positions in gold and silver on small dips, traders should focus important technical levels.
October gold closing price 45853, support 1 – 45650, support 2 – 45500, resistance 1 – 46100, resistance 2 – 46380.
December silver closing price 60464, support 1 – 59800, support 2 – 59300, resistance 1 – 61100, resistance 2 – 61700.
Ravi Singh, Founder and Director, DRS Advisory
The Fed Chair Jerome Powell remarks prepared for delivery to the Senate Banking Committee clearly cautioned that the causes of the recent rise in inflation may last longer than anticipated. Powell further added that the central bank would move against unchecked inflation if needed and contributed to the upward pressure on the US bond yields. These factors jointly pushed gold under renewed selling pressure.
Buy zone above – 46000 for the target of 46350
Sell zone below – 45750 for the target of 45450
Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research
Gold and silver plunged again on Tuesday amid record gains in the US benchmark 10-year bond yields and the dollar index. Both the precious metals were settled on a weaker note in the international markets. We expect both the precious metals to remain volatile in today’s session amid very high volatility in the dollar index. Gold has support at $1728-1718 per troy ounce and resistance at $1750-1764 per troy ounce while silver has support at $22.20-21.88 per troy ounce and resistance at $22.70-23.00 per troy ounce.
At the MCX, gold has support at 45800-45660 and resistance at 46100-46220 while silver has support at 60100-59500 and resistance at 60900-61400 levels. We suggest buying in December gold futures contract on dips around 45800 with a stop loss of 45660 for the target of 46200.
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