Gold prices were flat on Friday in internatioal markets but on course for their second straight weekly decline, with worries over major central banks potentially implementing big interest rate hikes to target runaway inflation weighing on bullion demand. Spot gold was last up 0.1% to $1,824.72 per ounce at 0215 GMT, after hitting a one-week low of $1,820.99 earlier in the session. US gold futures fell 0.2% to $1,825.90.
At 9.33am, gold contracts were trading 0.1 percent lower at Rs 50,543 for 10 grams on the Multi-Commodity Exchange (MCX), while silver slipped 0.06 percent to Rs 59,470 a kilogram.
Precious metals remained down yesterday as the US dollar index gained 0.25%. Gold prices are being in a range while selling pressure has been seen at the upper range due to aggressive US Fed on monetary policy to control inflation. However, the benchmark Treasury yield remained down 3.5% yesterday supporting the Gold prices at a lower range. Day trend in the precious metals prices may remain down any rise in the prices towards resistance levels may witness a selling pressure. Gold has resistance at Rs 51100 and support at Rs 50500. Silver has resistance at Rs 60500 and support at Rs 59000, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
Ravi Singh - Vice President and Head of Research - ShareIndia
Gold trend seems to remain bearish to sideways, till some major trigger to push the prices higher. Stronger dollar and treasury yields are continuously putting pressure on gold prices. Higher inflation and fear of possible US recession has induced an indecisiveness in gold trend. Investors may avoid taking long positions at current levels and wait for clear trend.Buy zone above Rs 50700 for target of Rs 51000
Sell zone below Rs 50300 for target of Rs 50000
Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited
Gold and silver prices were modestly lower in midday US trading on Thursday, as the metals markets are participants in a general commodity market erosion led by crude oil. US and global economic recession fears have hit the commodity markets hard amid ideas of reduced demand in the coming months, including for metals. August gold futures were last down $3.80 at $1,834.40. July Comex silver futures were last down $0.251 at $21.175 an ounce.
As per technical chart, gold and silver are trading at demand zone again, we can see a good upside movement 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.
August Gold closing price Rs 50594, Support 1 - Rs 50500, Support 2 - Rs 50300, Resistance 1 - Rs 50750, Resistance 2 - Rs 50900.
July Silver closing price Rs 59504, Support 1 - Rs 59200, Support 2 - Rs 58800, Resistance 1 - Rs 59800, Resistance 2 - Rs 60200.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
Gold prices traded steady on Friday with spot gold prices at COMEX were trading marginal up near $1825 per ounce in the morning trade. Gold prices are struggling to find a way over dollar dominance and firm US bond yields. The commitment from US Fed to tackle inflation has capped upside in the yellow metal.
We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1810 and resistance at $1840 per ounce. MCX Gold August support lies at Rs 50300 and resistance at Rs 50900 per 10 grams.Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.