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Gold Price Today: Yellow Metal Trades Flat, May Face Resistance at Rs 48,165, Says Expert

Spot gold was steady at $1,836.26 per ounce by 0134 GMT. Image: Shutterstock

Spot gold was steady at $1,836.26 per ounce by 0134 GMT. Image: Shutterstock

Gold futures on Multi Commodity Exchange (MCX) were down 0.05% at Rs 47,927 per 10 grams at 0935 hours

Gold and silver prices trade flat on Tuesday tracking the trend in the international market as a retreat in US Treasury yields. Gold futures on Multi Commodity Exchange (MCX) were down 0.05% at Rs 47,927 per 10 grams at 0935 hours. Silver futures dropped 0.24% to Rs 71,373 per kg. The dollar index was up 0.1%, making gold more expensive for other currency holders.

Spot gold was steady at $1,836.26 per ounce by 0134 GMT, after hitting its highest since February 11 at $1,842.91 on Friday. US gold futures were down 0.1% at $1,836.40 per ounce.

Benchmark US 10-year Treasury yields were pinned below 1.6%. Lower bond yields reduce the opportunity cost of holding non-yielding gold.

Gold and silver showed mixed trends on Monday. “Gold price closed higher on Monday to trade near a three-month peak, owing to a positive global cues. On the Multi-Commodity Exchange (MCX), June gold contracts closed higher by 0.42% at Rs 47,951 for 10 grams. July contract silver futures was closed on Monday at 0.16% higher at Rs 71,544 a kilogram," said Amit Khare, Commodity research head, GCL Securities Limited.

“If we talk about it’s technical, momentum indicators like RSI and moving average are giving positive signals, Daily technical chart is showing strength, so traders are advised to go long for intraday, below are some technical levels for intraday. June Gold closing price 47,951, Support 1 - 47,700, Support 2 - 47,500, Resistance 1 - 48,165, Resistance 2 - 48,375. July Silver closing price 71,544, Support 1 - 70,800, Support 2 - 70,150, Resistance 1 - 72,250, Resistance 2 - 72,920," he added.

“Speculative flows on the CME shows money managers raised their net long exposure in April. On physical consumption, Chinese demand has been strong this year, though Indian offtake will take a hit given the pandemic situation. We see a chance of Gold prices getting proximal to US$1,900/oz mark in the next 2-3 months," said Hitesh Jain, Lead Analyst - Institutional Equities, YES SECURITIES.

“Gold prices tend to fluctuate a lot concerned with the current situation in the market. With the current COVID wave, people are behaving normally with the hoarding of bullion and for the concerned economic tumble and end up spiking the prices of gold silver.However, bullion prices tend to behave as per the market trend and there is nothing to shook head over such staggered price steps." said Amit Gupta, managing director, SAG Infotech.

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first published:May 11, 2021, 09:52 IST