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Gold Prices Today: Weak global economic data fuelling recession fears to lend support to precious metals

Rahul Kalantri, VP Commodities, Mehta Equities, expects both precious metals to remain volatile this week ahead of the OPEC+ meeting and geo-political tensions between the US and China.

August 02, 2022 / 09:17 AM IST
Gold, gold prices

Gold, gold prices

Gold hit a four-week high on Tuesday in international markets as a weaker dollar and a dip in US Treasury yields boosted demand for the safe-haven metal amid mounting worries over an economic slowdown. Spot gold was up 0.4% at $1,778.69 per ounce as of 0044 GMT, its highest since July 5. US gold futures gained 0.2% to $1,791.10 per ounce.

At 9.05 am, gold contracts were trading 0.59 percent higher on the Multi-Commodity Exchange (MCX) at Rs 51,563 for 10 grams and silver shed 0.37 percent at Rs 58,110 a kilogram.

Better than forecast US ISM manufacturing PMI capped gains of precious metals. However, weakness in the US dollar index and benchmark Treasury yield supported the precious metals and kept the trend range-bound. Today's trend in bullion may remain range-bound to the upside and price correction could be a buying opportunity for intraday. Gold has support at Rs 51,200 and resistance at Rs 51,800. Silver has support at Rs 57,700 and resistance at Rs 59,000, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

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Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver closed around a 1-month high with marginal losses as bulls took a breather after posting the biggest weekly jump in nearly five months. The losses of the bullions could be linked to the US dollar taking a pause during the four-day downtrend. The manufacturing PMI data of China and other economic data by European countries released on Monday were also disappointing and supported precious metals. However, the US manufacturing PMI data was slightly better, which offset the gains.

We expect both precious metals to remain volatile this week ahead of the OPEC+ meeting and geo-political tensions between the US and China. Gold has support at $1755-1742, while resistance is at $1792-1805. Silver has support at $20.10-19.75, while resistance is at $20.55-20.82. In rupee terms, gold has support at Rs 51,050–50,780, while resistance is at Rs 51,580–51,740. Silver has support at Rs 57,550-56,940, while resistance is at Rs 58,980–59,510.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded steady on Tuesday with spot gold prices at COMEX up 0.18% near $1775 per ounce in morning trade. Gold prices rose on safe haven buying as weak economic data from across the world boosted recession fears. The dollar index was 0.21% down near 105.11 in the morning.

We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1760 and resistance at $1790 per ounce. MCX gold October support lies at Rs 51200 and resistance at Rs 51800 per 10 grams.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver traded steady on Monday in the international markets as both the precious metals settled on a slightly positive note. Gold December futures contract settled at $1787.70 per troy ounce with a gain of 0.33% and silver September futures contract settled at $20.36 per troy ounce with a gain of 0.06%. Due to strength in the rupee, both the precious metals settled on a slightly weaker note in the domestic markets. Gold October futures contract settled at Rs 51517 per 10 gram with a loss of 0.21% and silver September futures contract settled at Rs 58326 per one kilogram with a loss of 0.08%.

We expect both precious metals to remain volatile this week ahead of the OPEC+ meeting. Gold could test $1800 per troy ounce levels. Gold has support at $1774-1758 per troy ounce and resistance at $1800-1816 per troy ounce while silver has support at $20.10-19.84 per troy ounce and resistance at $20.55-20.80 per troy ounce. At MCX, gold has support at Rs 51330-51150 and resistance at Rs 51700-51880 while silver has support at Rs 57900-57450 and resistance at Rs 58750-59200. We suggest buying gold around Rs 51400 with a stop loss of Rs 51220 on a daily closing basis for target of Rs 51850.

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: Aug 2, 2022 09:17 am
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