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Gold Prices Today: Precious metals look oversold, recovery expected but with limited upside

Gold has support at Rs 50,400 and resistance at Rs 51,300. Silver has support at Rs 56,000 and resistance at Rs 58,400, Nirpendra Yadav of Swastika Investmart said

July 11, 2022 / 10:13 AM IST
Gold, gold prices

Gold, gold prices

Gold was trading a tad lower in the Indian market tracking flat global cues on July 11, as a towering US dollar put pressure on demand for greenback-priced bullion and pinned it near nine-month lows seen last week.

At 9.56 am, gold contracts were trading lower by 0.05 percent at Rs 50,752 for 10 grams on the Multi-Commodity Exchange (MCX), while silver was trading flat at Rs 57,131 a kilogram.

In the international market, spot gold held its ground at $1,742.08 an ounce at 02.21 GMT. US gold futures dipped 0.2 per cent to $1,739.60.

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Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver prices suffered heavy losses in the first half of the previous week and dropped to their weakest levels since September 2021.

The broad-based dollar strength amid growing recession fears and the worsening demand outlook for the yellow metal caused precious metals to close in the negative territory for the fourth straight week.

Gold has support at $1,730-1,717 a troy ounce, while resistance is at $1,752-1,764. Silver has support at $19.05-18.80, while resistance is at $19.40-19.62.

In rupee terms, gold has support at Rs 50,450–50,240, while resistance is at Rs 50,960–51,140. Silver has support at Rs 56,550-55,850 a kg, while resistance is at Rs 57,680–57,980.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold traded steady on July 11, with spot Comex gold trading flat near $1,742 an ounce in the morning session.

Gold prices are stuck in a narrow range after the US employment numbers failed to give clear direction. The stronger dollar continues to weigh on the investment sentiment, capping the upside in the yellow metal.

We expect gold prices to trade sideways to down for the day, with Comex spot gold support at $1,730 and resistance at $1,760 an ounce.

MCX August gold futures support lies at Rs 50,500 and resistance at Rs 51,100.

Nirpendra Yadav, Senior Commodity Research Analyst, Swastika Investmart

In the previous week, most of the data that emerged from the US was better than the forecast, which may ease the concern of a recession. However, precious metals look oversold and some recovery is expected but the upside may remain limited.

Gold has support at Rs 50,400 and resistance at Rs 51,300. Silver has support at Rs 56,000 and resistance at Rs 58,400.

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.​
Sandip Das
first published: Jul 11, 2022 10:13 am
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