Gold Prices Today: Yellow metal to stay range-bound amid strong dollar, global growth concerns

Gold, gold prices

Gold prices fell on Friday in international markets as the dollar and US Treasury yields recovered after declining in the previous session and put bullion on track for its biggest weekly drop in a month. Spot gold was down 0.6% at $1,845.89 per ounce as of 0104 GMT. US gold futures were flat at $1,849.20. Benchmark US 10 year Treasury yields strengthened after a sharp fall on Thursday, weighing on demand for non-yielding gold.

At 9.29am, gold contracts were trading 0.16 percent lower at Rs 50,904 for 10 grams on the Multi-Commodity Exchange (MCX) while silver shed 0.22 percent to Rs 61,390 a kilogram.

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Trading Strategy

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded weak on Friday with spot gold prices at COMEX 0.69% down near $1843 per ounce in morning trade. Earlier, gold prices rallied sharply hitting $1857 on weaker dollar and fall in US bond yields over global slowdown worries. Prices pared some gains on Friday as the dollar index firmed and equity indices plunged.

We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1820 and resistance at $1870. MCX gold August futures support lies at Rs 50600 and resistance at Rs 51300 per 10 grams.

Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver witnessed high volatility in yesterday's trades. After trading weak in the morning session, sentiment reversed in the evening session amid weakness in dollar and bond yields. The gold and silver market remains in a healthy position even after the US Federal Reserve raised its key interest rate by 0.75%, the biggest hike since 1994.

Gold prices have rebounded sharply from monthly lows near $1805 and are advancing towards $1850 – a familiar area where prices have deviated since mid-May. In fact, in the current month so far, gold prices have touched $1848.

Gold has support at $1834-1822, while resistance is at $1860-1871. Silver has support at $21.45-21.30, while resistance is at $22.05-22.28. In rupee terms, gold has support at Rs 50,770–50,510, while resistance is at Rs 51,240–52,450. Silver has support at Rs 61,050-60,850, while resistance is at Rs 61,980–62,410.

Ravi Singh - Vice President and Head of Research - ShareIndia

The aggressive rate hike move by the Federal Reserve increased the fear of the economy plunging into recession and bumped up safe haven appeal. Panic sell-off in the equity market has led to margin calls and investors are taking out money from gold profits.

Buy zone above Rs 51200 for target of Rs 51500

Sell zone below Rs 50800 for target of Rs 50500