India Gold MCX August futures contracts were trading higher on June 9 tracking positive bias seen in the international spot prices supported by a fall in US bond yields.
Investors hold back from making large bets ahead of U.S. inflation data and the European Central Bank policy meeting this week, said a Reuters report. The benchmark 10-year Treasury yields fell to their lowest in more than a month, reducing the opportunity cost of holding non-interest-bearing gold.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.10 percent at Rs 49,174 for 10 grams at 09:30 hours. July silver futures were trading 0.22 percent higher at Rs 71,385 a kilogram.
Gold and silver prices dipped on Tuesday amid profit-taking ahead of the U.S. inflation data. Both the precious metals settled on a weaker note in the international markets.
Gold August futures contract settled at $1894.40 per troy ounce and Silver July futures contract settled at $27.73 per troy ounce. Both precious metals settled with marginal losses in the domestic markets as well.
“We expect both the prices of metals could hold its key support levels of $1882 and $27.40 respectively ahead of the U.S. CPI data. Both the precious metals to remain volatile in Wednesday’s session and buy on dips strategy works for gold and silver,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research said.
“Gold has support at $1882-1870 per troy ounce and resistance at $1904-1912 per troy ounce. At MCX, Gold has support at 48950-48750 and resistance at 49330-49500; silver is having support at 70900-70500 and resistance at 71500-72000 levels,” he said.
Jain suggests buying in gold on dips around 48950 with a stop loss of 48750 for the target of 49330 and in silver around 70900 with a stop loss of 70400 for the target of 71800.
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Technical indicators
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades mixed near $1,897/oz after a 0.2% decline yesterday. Gold is choppy as support from lower bond yields, choppy equities is countered by upbeat US jobs openings report, lack of ETF buying, and slack consumer demand in India.
Gold may remain choppy reflecting volatility in the equity market and US dollar, however, the general bias may be on the upside unless the US dollar edge up sharply.
Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and Silver both are showing signs of profit-booking pressure on the daily technical chart. Traders are advised to go short near resistance levels and traders should also focus on some important technical levels given below for the day:
August Gold closing price 49,127: Support 1 – 48850, Support 2 – 48650, Resistance 1 – 49400, Resistance 2 – 49800
July Silver closing price 71,231: Support 1 – 70700, Support 2 – 70000, Resistance 1 – 71700, Resistance 2 – 72400
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold and silver ended weaker on Tuesday. Domestic gold ended marginally in the red, while silver fell on Tuesday, tracking overseas prices.
The dollar continued to move higher, while the U.S. Treasury yields eased on Tuesday.
Investors looked ahead to U.S. inflation data that could influence the Federal Reserve’s timeline to taper monetary support.
Domestic gold and silver prices could trade flat this Wednesday morning tracking overseas prices.
On the domestic front, MCX Gold August below 49000 could see a Bearish move up to 48850-48700 levels. Resistance is at 49100-49200 levels.
MCX Silver July holds support near 71000-70200 levels. Resistance is at 72100-72800 levels.
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