Gold price in India rose on Tuesday after a significant drop in the previous session. On the Multi-Commodity Exchange (MCX), August gold contracts increased 0.38 per cent to Rs 48,275 for 10 grams at 0905 hours. Silver also edged higher on July 20. The precious metal climbed 0.28 per cent to Rs 67,431 on Tuesday.
In the international market, yellow metal traded flat on Tuesday. Spot gold was steady at $1,813.15 per ounce, as of 0057 GMT, after falling to a one-week low of $1,794.06 in the previous session, according to Reuters. Silver eased 0.1% to $25.18 per ounce, palladium was steady at $2,597.23, and platinum rose 0.3% to $1,077.98. US gold futures edged up 0.3% at $1,813.80. The dollar held near a three-and-half-month peak against its rivals to make gold more expensive for holders of other currencies.
“The confluence point for the gold is setting around $1800 as both bulls and bears are applying their own forces to keep gold prices near to confluence point. Yellow metal has managed to gained couple of dollars however trading in tremendous pressure despite all favorable conditions particularly wobbly global equity markets and declining bond yields,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold on MCX is also trading in pressure and somehow able to manage Rs 48,000 levels. We anticipate that momentum for precious metal is shifting towards the bear’s side and is not the right time to enter into fresh long trades. It’s becoming a trader’s market to capture few hundred points either side of pivot level. Key level for gold August Contract – Rs 48,037. Buy zone above – Rs 48,050 for the target of Rs 48,195-48,365. Sell zone below – Rs 48,000 for the target of Rs 47,865-47,700,” he added.
“International spot gold ended flat in choppy trading on Monday, as a buoyant dollar offset a slump in Treasury yields to their lowest levels since February. International spot silver prices crashed on Monday, tracking the strength of the Dollar. Domestic gold ended the session marginally higher, tracking a rebound in overseas prices on Monday. Domestic silver ended the session weaker, tracking weak overseas prices on Monday. The Dollar Index rose to a more than three-month high on Monday supported by investors’ fears over a relentless surge in coronavirus cases in the US and Southeast Asian nations. However, growing inflationary pressures pulled the US benchmark Treasury yields lower and capped downside in gold,” said Sriram Iyer, senior research analyst at Reliance Securities.
“International spot gold and silver prices have started flat to marginally higher this Tuesday morning in Asian trade. Technically, LBMA Gold has bounced back from $1795 level and is trading near $1815 levels indicating a sideways momentum in coming session. Support is at $1807-$1790 levels. Resistance is at $1822-$1830 levels. LBMA Silver holds a 21-Daily Moving Average near $26.00 level below which could take prices $25.00-$24.70 levels. Resistance is at $25.40-$25.70 levels,” Iyer added.
“On the domestic front, MCX Gold August took a support of 47800 levels where it closed above 48000 indicating for sideways momentum within the range of Rs 47,700-48,200 levels in coming session. MCX Silver September below Rs 68,000 could see Rs 66,800-66,000 levels. Resistance is at Rs 67,700-68,400 levels,” he further mentioned.
“Gold and silver are giving some pullback signal on the hourly chart, momentum indicator RSI also indicating the same on the hourly chart. Gold is looking more strong than silver in daily chart, Traders are advise create long position in gold and silver near support levels, traders should also focus important technical levels given below for the day : August gold closing price Rs 48,094, Support 1 – 47800, Support 2 – Rs 47600, Resistance 1 – RS 48,370, Resistance 2 – Rs 48,600. September Silver closing price 67,246, Support 1 – Rs 66,600, Support 2 – Rs 66,000, Resistance 1 – Rs 67,860, Resistance 2 – Rs 68,500,” said Amit khare, AVP-Research Commodities, Ganganagar Commodities Limited.