Gold prices changed little on Tuesday in the international markets as a pullback in the dollar-supported demand for bullion countered pressure from a recovery in US Treasury yields. Spot gold was last up 0.1 percent at $1,825.29 per ounce, as of 0218 GMT. US gold futures gained 0.6 percent to $1,825.60.
At 9:42am, gold contracts were up 0.23 percent at Rs 50,364 for 10 gram on the Multi-Commodity Exchange (MCX), while silver added 0.19 percent at Rs 61,039 a kilogram.
Gold and silver prices were supported yesterday by China's poor industrial production and retail sales figures due to the recent Covid-19 pandemic. Despite lower demand projected by OPEC members, crude oil prices have begun to rise, boosting precious metals once more. Prior to Fed Chair Powell's address later in the day, the US treasury yield and dollar, which swings in the opposite direction of gold prices, fell. Technically, Gold is holding support above Rs 49500, indicating that the uptrend could continue in today's session. It has resistance at Rs 50300 while silver has support at Rs 58000 and resistance at Rs 61500, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
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Tapan Patel, Senior Analyst (Commodities), HDFC Securities:
Gold prices traded higher on Tuesday with spot gold prices at COMEX were trading near $1826 per ounce in the morning trade. The yellow metal recovered in previous trading day supported by weaker dollar despite of firm US bond yields. The global economic growth worries spurred by weak China data and surging inflation has boosted buying in safe haven asset.
We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1800 per ounce and resistance at $1850 per ounce. MCX Gold June futures support lies at Rs 49800 per 10 gram and resistance at Rs 50700 per 10 gram.
Ravi Singh - Vice President and Head of Research - ShareIndia
Gold futures are falling due to the strength in Dollar, fall in Indian Rupee and higher Treasury Yield. However, inflationary pressures, Covid breakout in China and uncertainties about the Russia-Ukraine war are supporting the precious metal. Gold may face resistance around Rs 50500 levels this week.
Amit Khare, AVP- Research Commodities, Ganganagar Commodity
Gold and silver showed upside movement on May 16. On the Multi-Commodity Exchange (MCX), June gold contracts closed up by 0.75% at Rs 50,248 for 10 grams. July contract Silver futures closed at Rs 60,926 a kilogram, up 2.69%. As per technical chart, gold and silver are trading at oversold zone, we can see a huge short covering rally in coming future, momentum indicator RSI is also indicating the same on the 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.
June Gold closing price Rs 50248, Support 1 - Rs 50100, Support 2 - Rs 49800, Resistance 1 - Rs 50450, Resistance 2 - Rs 50650.
July Silver closing price Rs 60926, Support 1 - Rs 60500, Support 2 - Rs 59900, Resistance 1 - Rs 61400, Resistance 2 - Rs 61900.
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