Gold Prices Today: Range-bound movement likely, support at Rs 50,700. Trade with negative bias, say experts

Gold, Gold Prices

Gold edged lower on Tuesday in the international markets, as the US dollar rebounded slightly after a slide in the previous session, weighing on demand for greenback-priced bullion.

Spot gold fell 0.2 percent to $1,850.40 per ounce, as of 0240 GMT, after rising to its highest since May 9 of $1,865.29 on Monday. US gold futures were flat at $1,848.20.

At 9:45am, gold contracts were up 0.16 percent at Rs 50,990 for 10 gram on the Multi-Commodity Exchange (MCX) while silver added 0.05 percent at Rs 61,333 a kilogram.

Precious metals gave up early days' gain in the previous session as the US equity market Dow Jones gained more than 2 percent. Economic data from the Eurozone and US, to be released in the evening today, are important for precious metals. The dollar, which measures the basket of six major currencies, slipped 1 percent yesterday.

The US benchmark Treasury yield gained more than 2 percent capping the gain of precious metals. Range bound to downside trend is expected in precious metals today. Gold has support at Rs 50,700 and resistance at Rs 51,300. Silver has support at Rs 60500 and resistance at Rs 62000, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

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COMEX gold trades modestly higher near $1850/oz building on the gains noted last week. Gold has edged up gaining support from weakness in US dollar, lower bond yields and increasing challenges for global economy. ETF inflows also show pick up in investor interest. However, weighing on price is increasing emphasis on monetary tightening to control inflation by Fed and other central banks. Gold has recovered sharply from recent lows indicating improved sentiment after recent sell-off however any sharp rise may be challenged by tightening expectations.

Gold prices traded steady on Tuesday with spot gold prices at COMEX were trading near $1850 per ounce marginal down from previous close. The yellow metal pared some of previous gains with rebound in dollar index in the morning trade. Gold prices are still trading in upper range supported by global growth worries and higher inflation.

We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1840 and resistance at $1870 per ounce. MCX Gold June futures support lies at Rs 50600 and resistance at Rs 51200 per 10 gram.

On Monday, gold and silver prices traded higher in first half of trading session but went down from their earlier highs tacking upsurge in US stock markets. Gold settled at $1,847.80, up by 0.15% while silver was settled at $21.71, down by 0.26%, while in the domestic market, Gold settled at Rs 50,907 with a gain of 0.15% and silver ended at Rs 61,303 with a loss of 0.17%.

We expect both the precious metals to remain volatile in today’s session. Gold has support at $1834-1822, while resistance is at $1862-1874. Silver has support at $21.48-21.20, while resistance is at $22.10-22.38. In rupee terms, gold has support at Rs 50,740–50,510, while resistance is at Rs 51,140–51,350. Silver has support at Rs 60,910-60,650, and resistance is at Rs 61,680–62,110.