Gold prices in India saw a huge drop on Monday. On the Multi-Commodity Exchange (MCX), August gold contracts slumped 0.40 per cent to Rs 47,732 for 10 grams at 0905 hours on July 12. Silver, too slumped on Monday. September silver futures were trading 0.33 per cent lower at Rs 69,065 a kilogram.
In the international market, gold prices inched higher on Monday. The investors keenly wait for the US inflation data due this week and Federal Reserve Chair Jerome Powell’s testimony. Spot gold rose 0.1% to $1,809.34 per ounce by 0119 GMT. US gold futures eased 0.1% to $1,809.3, according to Reuters.
“International spot gold and silver prices have started marginally in the green this Monday morning in Asian tracking a slightly weaker dollar and bond yields. A rise in global caseloads in the more transmissible Delta variant of Covid-19 infections also lent safe haven support. Technically, LBMA Gold could trade in sideways to marginal upside momentum where support is at $1796-$1787 levels. Resistance is at $1813-$1822 levels. LBMA Silver is trading near 200-Daily Moving Average which is placed at $26.40 level above which will continue its Bullish momentum & further could see $26.80-$27.30 levels. Support is at $25.80-$25.35 levels," said Sriram Iyer, Senior Research Analyst at Reliance Securities.
“Technically, MCX Gold August holds a strong support near Rs 47,800-47,600 levels. Resistance is at Rs 48,100-48,300 levels. MCX Silver September holds a resistance 50-DMA near Rs 70,480 levels above which could see a bullish momentum up to Rs 71,200-72,100 levels. Support is at Rs 68,500-67,900 levels," he added.
“Technically, August gold futures prices scored a bearish “outside day" down on the daily bar chart today after hitting a three-week high on Thursday. The gold bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,750.10. First resistance is seen at $1,820.00 and then at today’s high of $1,810.50. First support is seen at today’s low of $1,803.50," said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
“Gold and silver showing some profit booking in hourly chart, momentum indicator RSI also facing resistance near 55-60 levels in hourly chart. So traders are advise create short position in bullion’s near given resistance levels. Traders should also focus important technical levels given below for the day: August gold closing price Rs 47,923, Support 1 - Rs 47,700, Support 2 - 47,500, Resistance 1 - Rs 48,121, Resistance 2 - Rs 48,350. September Silver closing price Rs 69,297, Support 1 - Rs 68,700, Support 2 - Rs 68,100, Resistance 1 - Rs 69,900, Resistance 2 - Rs 70,450," said Khare.
“Gold prices are holding the level of $1800 an ounce however in search of some strong fundamental reasons for price action on upside. The market participants will try to find clues on tapering from Federal Reserve chair Jerome Powell’s semi-annual monetary policy testimony this week," Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold on MCX is also replicating the bullish global price behavior however Rs 48,000 is going to be a key resistance level. After the stellar move in gold prices last week, we may expect a small correction in gold prices during early hour for trading today however the outlook remain positive for the day and any significant dip can be an opportunity for accumulation. Key level for gold August Contract – Rs 47,831. Sell Zone Below – Rs 47,825 for the target of Rs 47,713-47,505. Buy zone above – Rs 47,850 for the target of Rs 48,050-48,150," he added.