The gold price in the futures market extended gains for the second consecutive session on May 17 tracking the global mood with easing bond yields & weakness in the US dollar.
The yellow metal June futures were up by Rs 301 or 0.63 percent at Rs 47,977 per 10 gram on the MCX, at 10:20 hours IST. It touched an intraday high of Rs 48,013 and low of Rs 47,942 after opening at Rs 47,989.
Silver MCX July futures also traded higher for the second straight day, rising by Rs 840 or 1.18 percent to Rs 71,925 per kg. The commodity hit a day's high of Rs 72,037 and a low of Rs 71,855 after beginning Monday's trade at Rs 71,900.
In the international markets, gold June futures gained 0.83 percent at $1,853.30 per troy ounce and silver July futures rose 1.48 percent to $27.77 per troy ounce.
"Gold trades higher supported by increased tensions between Israel and Palestine, disappointing US economic data and concerns about rising virus cases in Asia and minor ETF inflows. However, weighing on price are concerns about Indian consumer demand and improving virus situation in US and Europe," said Ravindra Rao, VP - Head Commodity Research at Kotak Securities.
According to him, gold may remain choppy as market players assess inflation risks, however, mixed economic data and Fed's dovish stance may continue to support.”
In the previous session, gold and silver prices settled on a positive note in the international markets. Gold June futures contract settled at $1,843.85 per troy ounce, up by 1.09 percent and silver July futures contract was settled at $27.51 per troy ounce, up by 1.67 percent, on disappointing US retail sales and core retail sales data.
The price of the precious metals was also up in the domestic markets on Friday. Gold June futures contract settled at Rs 47,676 per 10 grams with a gain of 0.50 percent, and silver July futures contract settled at Rs 71,085 per kilogram with a gain of 0.87 percent.
Today, the US 10-year bond yield traded at 1.62, down 0.92 percent while the Dollar index June futures traded flat at 90.38.
In the previous session, the dollar index plunged and benchmark 10-year bond yield were off their highs after weaker than expected US data. The US retail sales were unchanged last month, following March's revised increase of 10.7 percent; the data significantly missed expectations as economists were forecasting an increase of 1.0 percent.
Meanwhile, the US Federal Reserve officials reiterated last week there would be no imminent move to tighten monetary policy in the world's biggest economy and lent support.
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"Gold held $1,800 per troy ounce last week and inflation fear and disappointing data could further support prices of both the precious metals this week. Gold has support at $1,828-1,810, while resistance at $1,854-1,866 per troy ounce. Silver has support at $27.20-26.84, while resistance is at $27.88-28.20 per troy ounce," Manoj Kumar Jain of Prithvifinmart Commodity Research told Moneycontrol.
Sriram Iyer, Senior Research Analyst at Reliance Securities said MCX Gold June pivotal level is at Rs 48,365 per 10 gram and a break above will push gold to Rs 48,600. Supports are at Rs 47,465 and Rs 47,220, but a break below both levels will pull prices to Rs 46,930.
"MCX Silver July holds a pivotal resistance at Rs 71,860 per kg and a break above will push prices Rs 72,690. Supports are at Rs 70,950 and Rs 70,550, but a break below both levels will pull prices to Rs 69,915," he added.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.