Gold prices on Friday in the international markets were set for a second weekly decline as US Treasury yields held near multi-year highs following strong labour market data and hawkish comments from Federal Reserve officials, dampening the appeal for zero-yield bullion.
Spot gold was flat at $1,627.20 per ounce as of 0118 GMT, and lost 0.8% so far for the week. US gold futures were down 0.4% at $1,630.10.
At 10:03 am, gold contracts were trading 0.42 percent lower on the Multi-Commodity Exchange (MCX) at Rs 49,931 for 10 grams and silver shed 0.75 percent at Rs 56,230 a kilogram.
Trading Strategy
Rahul Kalantri, VP Commodities, Mehta Equities
Bullion prices ended mixed on Thursday due to strength in the rupee, with gold erasing its modest gains it had clocked in intra-day trades, while silver gave up most of its gains before ending marginally higher. Gold and silver witnessed high volatility and recovered from their lows after downbeat US economic data, but a comeback by the dollar index and strength in the US bond yields capped gains. The 10-year bond yields in the US crossed 4.20% for the first time since 2008, thus weighing on global commodity prices.
Gold has support at $1640-1628, while resistance is at $1662-1674. Silver has support at $18.20-17.90, while resistance is at $18.82-18.99. In rupee terms gold has support at Rs 49,910-49,740, while resistance is at Rs 50,340, 50,580. Silver has support at Rs 55,880-55,310, while resistance is at Rs 56,980–57,510.
Nirpendra Yadav, Senior Research Analyst at Swastika Investmart
Precious metals prices gained as the US dollar index slipped 0.5% yesterday. The better-than-forecast US unemployment claims capped the gain of precious metals yesterday. Delay in China's economic data raised economic growth concerns that may support precious metals. However, the Reserve Bank of India's intervention as rupee falls may keep gold prices in a range while silver may remain bullish today. Gold has support at Rs 50000 and resistance at Rs 50500. Silver has support at Rs 55300 and resistance at Rs 57500.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver on October 20 settled on a positive note in the international markets. Gold December futures contract settled at $1,636.80 per troy ounce, up 0.16%, and silver December futures contract settled at $18.69 per troy ounce, up 1.79%. Due to strength in the rupee, domestic markets settled on a mixed note.
We expect gold and silver to remain volatile in today’s session amid volatility in the dollar index. Gold could hold its support level of $1622 per troy ounce and silver could hold $18 per troy ounce levels. Gold has support at $1622-1608 while resistance is at $1645-1658 per troy ounce. Silver has support at $18.34-18.00 while resistance is at $19.00-19.30 per troy ounce. At MCX, gold has support at Rs 50000-49770 and resistance at Rs 50380-50500 while silver has support at Rs 56150-55600 and resistance at Rs 57100-57750. We suggest buying gold around Rs 50,000 with a stop loss of Rs 47,770 for target of Rs 50,500.
With agency inputs
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