Gold prices dipped on Thursday in international markets tracking a rebound in US Treasury yields and the dollar, which continued to weigh on demand for safe-haven bullion.
At 9.37am, on the Multi-Commodity Exchange (MCX), gold contracts were down 0.07 percent, trading at Rs 52,592 for 10 grams, while silver fell 0.31 percent to Rs 68,194 a kilogram.
Gold and silver prices extended losses yesterday but prices remained sideways through the day. Today the trend in precious metals may remain down ahead of US job data and Fed Chair Jerome Powell speech. Gold is likely to test its crucial support of Rs 51,100 while silver may test Rs 67,400 levels. However, downside in precious metals may remain limited due to speculation over Russia-Ukraine peace talk, said Nirpendra Yadav, senior commodity research analyst at Swastika Investmart.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver prices moved higher on Wednesday as the US dollar reversed lower. Following Tuesday’s robust Housing Starts data, existing home sales declined to take the lustre out of Treasury yields. The yield differential moved in favour of the euro and yen, putting downward pressure on the dollar. International gold settled at $1,955.60 per troy ounce, down by 0.17% and silver settled $25.27 per troy ounce, down by 0.47%. Domestic markets gold settled at Rs 52,628 down by 0.23% and silver settled at Rs 68,406 down by 0.53%. Existing home sales fell to a seasonally adjusted and annualised rate of 5.77 million units last month, down 2.7% compared to February’s annualised rate of 6.02 million homes. This is the second consecutive month home sales have declined.
Factors like stubborn inflation, onset of stagflation, geopolitical uncertainties, and slow growth will be supportive of gold prices and will help create a vision for any fall. Gold has support at $1938-1928, while resistance at $1962-1972. Silver has support at $24.90-24.68, while resistance is at $25.30-25.48. In rupee terms gold has support at Rs 52,420–52,250, while resistance is at Rs 52,950–53,110. Silver has support at Rs 68,020- 67,650 while resistance is at Rs 68,740–69,210.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver extended losses on Wednesday despite downbeat US existing home sales data. Both precious metals settled on a weaker note in the international markets. Gold June futures contract settled at $1955.60 per troy ounce with a loss of 0.17% and silver May futures contract settled at $25.27 per troy ounce with a loss of 0.47%. Both precious metals also settled on a weaker note in the domestic markets.
We expect both precious metals to remain volatile in today’s session and gold is expected to hold $1934 per troy ounce levels and silver could also hold $24.84 per troy ounce levels on a closing basis. Gold has support at $1945-1934 per troy ounce and resistance at $1968-1984 per troy ounce while silver has support at $25.00-24.84 per troy ounce and resistance at $25.55-25.70 per troy ounce.
At MCX, gold has support at Rs 52480-52300 and resistance at Rs 52850-53000 while silver has support at Rs 68000-67440 and resistance at Rs 68800-69220 levels. We suggest sell on rise in gold around Rs 52880 with a stop loss of Rs 53050 for target of Rs 52450.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades mixed near $1955/oz after a 0.2% decline yesterday. Gold has stalled after recent losses as US dollar index and bond yields came off the highs. However, stability in equity market has reduced gold’s appeal as an alternative asset. Gold ETF investors have also moved to the sidelines awaiting more clarity. Gold has retreated after closing in on $2000/oz level but price seems to have steadied near $1950/oz. With mixed factors, prices may remain rangebound but we may see some selling pressure if equities manage to build on recent gains.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.