Gold prices in India continued to remain below Rs 47,000-mark on Monday. On the Multi-Commodity Exchange (MCX), gold futures rose 0.11% to Rs 46,976 for 10 grams at 0950 hours IST on June 28. Silver saw a marginal jump on Monday. July silver futures were up by 0.30 per cent at Rs 68,079 a kilogram.
In the international market, gold prices slipped to a one-week low on Monday, weighed down by a bounce in the dollar and mixed signals from the US Federal Reserve on monetary policy. Spot gold was down 0.2% to $1,777.03 per ounce by 0249 GMT, according to Reuters. US gold futures shed 0.2% to $1,774.80, Reuters said.
“Inflation measure was below expectations in May. The data initially weighed on the dollar, but the currency recovered from the lows of the session and kept upside capped. According to CFTC data, on the speculative side of things, gold net longs were reduced by 38,288 contracts to 76,163, while silver net longs were reduced by 16,675 contracts to 29,882 in the week to June 22," said Sriram Iyer, senior research analyst at Reliance Securities.
“International spot gold and silver prices have started flat to weaker this Monday morning in Asian trade. Technically, LBMA Gold Spot above $1780 level could see upside push up to $1787-$1798 level. Support is at $1775-$1766 levels. LBMA Silver if sustain above $26.00 level will continue its bullish momentum & further could see $26.30-$26.90 levels. Support is at $25.90-$25.00 levels," it added.
“Domestic gold and silver prices could start flat to weaker on Monday morning, tracking overseas prices. On the domestic front, MCX Gold August holds a strong support of Rs 46,800 where it could bounce back up to Rs 47,000-47,200 levels. If MCX Silver July trades above Rs 67,500 levels we could witness a continuation of its bullish momentum up to Rs 68,200-70,000 levels. Support is at Rs 67,000-65,800 levels," he mentioned.
“The momentum indicators are turning up, and a base appears to have been forged around $1,773. A move above $1,800 is needed to confirm the bottom. Initial target $1,820 (38.2%) of June ’s decline and $1,833 (~200-day moving average). U.S. 10-year yield stalled at 1.50%, Another bullish signal is that bitcoin is not seeing a renewed rally after briefly falling below $30,000 and erasing all the year-to-date gains this week," said Amit Khare, AVP research commodities, Ganganagar Commodities Limited.
“Gold and silver both are trading at oversold zone. The momentum indicator RSI is also creating positive divergence on four hourly chart, So traders are advise to create long position in gold, silver near support levels and traders should also focus important technical levels given below for the day: August Gold closing price 46,925, Support 1 - Rs 46,700, Support 2 - Rs 46,500, Resistance 1 - Rs 47,150, Resistance 2 - Rs 47,450. July silver closing price Rs 67,873, Support 1 - Rs 67,400, Support 2 - Rs 66,800, Resistance 1 - Rs 68,200, Resistance 2 - Rs 68,850," he said.
“The confusion over the FOMC hawkish message followed by Powell’s dovish testimony has created uncertainty which is keeping gold below the $1,800 an ounce. Currently the momentum indicators are turning up, and a base appears to have been formed around $1,773. A move above $1,800 is needed to confirm the bottom and get some excitement back into the space. Gold on MCX is also trading in tight range where skilled traders are making money both sides. Sideways consolidation is likely to continue until it closing above Rs 47,500 levels. Key level for Gold August contract – Rs 46,991. Buy zone above – Rs 46,995 for the target of Rs 47,150-47,329. Sell zone below – Rs 46,991 for the target of Rs 46,775-46,613," said Sandeep Matta, founder, TRADEIT Investment Advisor.