Gold prices eased on Wednesday in international markets as the dollar held ground at its highest in more than two years and pressured demand for the greenback-priced bullion. Spot gold was down 0.1 percent at $1,903.16 per ounce. US gold futures were up 0.1 percent at $1,905.80.
At 9.38 am, gold contracts were down 0.09 percent at Rs 51,536 for 10 grams on the Multi-Commodity Exchange (MCX) while silver shed 0.04 percent to Rs 64,941 a kilogram.
The US 10-year bond yield fell more than three percent on Tuesday, causing gold prices to rise modestly. The strong US dollar index, on the other hand, limited precious metals' gains. Global stock markets are under pressure as a result of slowing global growth and rising inflation, attracting safe-haven demand and keeping gold prices low. Consumer sentiment in the United States was 107.3 points lower than expected, indicating less demand due to rising costs. The current precious metals trend may continue to rise where gold prices could go to Rs 52000 levels having support of Rs 51400. Silver prices may stay range-bound, with support around the lower end of the range. Support is available at Rs 64400, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver showed very high volatility on Tuesday amid volatility in the dollar index and global equities. Both the precious metals settled on a mixed note in the international markets. Gold June futures contract settled at $1904.10 per troy ounce with a gain of 0.43 percent while silver May futures contract settled at $23.54 per troy ounce with a loss of 0.52 percent. Both precious metals also settled on a mixed note in the domestic markets.
Global equity markets plunged again due to Chinese shock and Russia-Ukraine crisis. The dollar index crossed 102 mark restricting gains of global commodities. We expect gold and silver prices to remain volatile in today’s session. Gold could hold its support level of $1884 and silver could also hold $23 per troy ounce levels. The yellow metal has support at $1896-1884 and resistance at $1914-1922 per troy ounce while silver has support at $23.30-23.00 per troy ounce and resistance at $23.80-24.00 per troy ounce.
At MCX, gold has support at Rs 51440-51280 and resistance at Rs 51720-51880 while silver has support at Rs 64660-64200 and resistance at Rs 65300-65700. We suggest buying gold around Rs 51480 with a stop loss of Rs 51330 on a daily closing basis for target of Rs 51800.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver prices on April 26 were modestly higher and are back above $1,900, and silver is above $23.50 as the bulls bounced back after the recent downdraft that saw the market hit a nine-week low on Monday. Short covering in the futures market and some perceived bargain hunting in the cash market were featured. Gold and silver bulls still have more work to do to break the near-term price downtrend lines that are now in place on the daily bar charts. In international markets, gold futures were up $6.50 at $1,902.50 while silver was down $0.125 at $23.545 an ounce. In the domestic market also gold was up by Rs 176 at Rs 51,569 and silver was down by Rs 166 at Rs 64950.
Gold has support at $1888-1876, while resistance at $1914-1928. Silver has support at $23.31-23.07, while resistance is at $23.88-24.10. In rupee terms, gold has support at Rs 51,220–50,960, while resistance is at Rs 51,820–52,050. Silver has support at Rs 64,620- 64,365 while resistance is at Rs 65,650–66,050.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.