Gold on Tuesday firmed above a near four-week low in the previous session in international markets as lower US Treasury yields lifted prices and a slight retreat in the dollar offered support.
At 9.43 am, gold contracts were up 0.18 percent at Rs 51,485 for 10 grams on the Multi-Commodity Exchange (MCX) while silver added 0.47 percent to Rs 65,421 a kilogram.
Trading Strategy
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart
Gold and silver prices continued their downward movement due to the hawkish US Fed outlook. US dollar index is trading near 102 levels on expectation of a 50 basis point rate hike in the upcoming Fed meeting. However, the US 10-year bond yield remained down five percent. On the other hand, a rapid decline in the global economy is expected due to tight monetary policy. Gold prices have crucial support at Rs 51300-51000 if prices hold support levels, then a bounce towards Rs 52000 could be seen.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver are starting the week with some heavy selling pressure with gold hitting a nearly four-week low and silver a nine-week low. There are mounting concerns regarding demand for raw commodities as COVID cases in China are spreading rapidly throughout the country. Gold futures were down $35.90 at $1,898.00 and silver was down $0.729 at $23.53 an ounce. In domestic market also gold was down Rs 831 at Rs 51,438 and silver was down Rs 1495 at Rs 65051. Gold and silver extended fall as the US dollar index went higher and hit a two-year high early today. The yield on the 10-year US Treasury note is presently fetching 2.833 percent.
Despite sharp corrections in gold and silver, gold holds its key support level of $1880 per troy ounce and silver could hold $23.00 and will show positive move in coming days ahead of the marriage season and Akshaya Tritiya early next month.
Gold has support at $1885-1872 and resistance at $1912-1922. Silver has support at $23.42-23.20 while resistance is at $24.10-24.32. In rupee terms gold has support at Rs 51,140–50,920, while resistance is at Rs 51,780–52,050. Silver has support at Rs 64,620-64,410 while resistance is at Rs 65,690–66,070.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices plunged again on Monday amid demand fears from China after coronavirus's rapid spread in the country. Both the precious metals settled on a weaker note in international markets. The Russia-Ukraine crisis and pressure on global equity markets are supporting precious metals. Gold holds its key support level of $1884 per troy ounce and silver could hold $23.00 per troy ounce levels in upcoming sessions. Gold has support at $1884-1870 per troy ounce and resistance at $1910-1922 per troy ounce while silver has support at $23.40-23.00 and resistance at $23.88-24.20 per troy ounce.
At MCX, gold has support at Rs 51220-51000 and resistance at Rs 51580-51770 while silver has support at Rs 64800-64440 and resistance at Rs 65550-66100. We suggest buying gold above Rs 51400 with a stop loss of Rs 51180 on a closing basis for target of Rs 51750 and silver above Rs 65220 with a stop loss of Rs 64770 on a closing basis for target of Rs 66100.
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