Gold price in India jumped on Monday, tracking firm global cues. On the Multi-Commodity Exchange (MCX), the gold futures climbed 0.38 per cent to Rs 50,813 for 10 grams at 0950 hours on June 27. Silver price also saw a huge rise on Monday. The precious metal future soared 0.74 per cent to Rs 60,190 for a kilogram on June 27.
In the international market, gold price surged as some western countries plan to ban imports of the safe-haven metal from Russia. The European Union along with the United States and the United States have introduced a series of sanctions on Russia in the last few months, over its invasion of Ukraine. Now, four of the Group of Seven (G7) rich nations moved to ban imports of Russian gold on Sunday to weaken Moscow and its economy. This move may impact the supplies of bullion, if implemented.
Spot gold was up 0.2 per cent at $1,828.99 per ounce by 0102 GMT. US gold futures were flat at $1,830.90. Spot silver rose 0.2 per cent to $21.15 per ounce.
Worried investors and the anticipation of more-than-expected interest rate hike by the United States central bank, kept yellow metal under pressure last week. However, the economic data showed that inflation expectations will be less worrisome than initially feared, reported Reuters.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 1,061.04 tonnes on Friday from 1,063.07 tonnes a day earlier.
Gold Price Outlook
“MCX gold prices are expected to correct towards Rs 50,200 levels for the day as long as they sustain below Rs 50,850 levels amid strong dollar and expectation of monetary tightening across major countries globally to combat high inflation. However, investors will keep a close eye on major economic data from the US to gauge the economic health of the country,” said ICICI Direct in a note. “Silver prices are also expected to take cues from gold prices and may move towards Rs 59,100 levels,” it mentioned.
“Gold prices this week may show some volatility amid important events like G7 summit, US Q1 GDP numbers and OPEC meeting. The movement in dollar index may decide the trend of gold prices. Currently, gold may remain in consolidation zone till any major announcement triggers some move. Buy Zone Above – Rs 50,750 for the target of Rs 51,000. Sell Zone Below – Rs 50,500 for the target of Rs 50,300,” said Dr. Ravi Singh, vice president and head of research, Share India.
“As per technical chart, gold and silver are trading at oversold zone. We can see a good short covering rally in coming future, momentum indicator RSI also indicating the same in hourly as well as daily chart. So traders are advised to create fresh buy positions near given support levels. Traders should focus important technical levels given below for the day: August Gold closing price Rs 50,623, Support 1 – Rs 50,500, Support 2 – Rs 50,300, Resistance 1 – Rs 50,800, Resistance 2 – Rs 51,000,” said Amit khare, AVP- Research Commodities, Ganganagar Commodity Limited.
“July Silver closing price Rs 59,749, Support 1 – Rs 59,400, Support 2 – Rs 58,800, Resistance 1 – Rs 60,000, Resistance 2 – Rs 60,500,” Khare added.