Gold prices edged up on Tuesday in the international markets as the dollar eased, while investors kept a keen eye on posturing from major central banks on interest rate hikes for a clearer outlook for bullion. Spot gold was up 0.2% at $1,841.13 per ounce by 0200 GMT, after largely range-bound trading on Monday. US gold futures firmed 0.1% to $1,842.90.
At 9.37am, gold contracts were trading 0.2 percent higher at Rs 50,836 for 10 grams on the Multi-Commodity Exchange (MCX), while silver added 0.46 percent to Rs 61,021 a kilogram.
Gold and silver prices on Monday traded flat to negative and the price of the precious metal was struggling at a previous support zone as US markets were on holiday. In international markets gold settled at $1,840.60, down by 0.07% and silver was settled at $21.59, down by 0.20%. In domestic markets also gold settled at Rs 50,735 with a loss of 0.19% and silver settled at Rs 60744 with a loss of 0.32%, said Rahul Kalantri, VP Commodities at Mehta Equities.
Gold has support at $1828-1816, while resistance at $1852-1861. Silver has support at $21.35-20.95, while resistance is at $21.85-21.95. In rupee terms gold has support at Rs 50,440–50,110, while resistance is at Rs 50,980–51,240. Silver has support at Rs 60,120-59,550, while resistance is at Rs 61,380–61,710, he added.
Trading Strategy
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart
Gold and Silver prices remained range-bound yesterday as the US market was closed. However, precious metals remained supportive at a lower range due to weakness in the US dollar index and benchmark Treasury yield. An ease in the dollar may pull the prices of precious metals higher in today's session. Gold has support at 50500 and resistance at 51000. Silver has support at 60400 and resistance at 62100.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
Gold prices traded steady on Tuesday with spot gold prices at COMEX were trading flat near $1840 per ounce in the morning trade. The yellow metal held grounds on weaker dollar and lack of fresh triggers post volatile week. The recession fears and aggressive rate hike from US Fed may keep tug of war on keeping gold prices in range.
We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1820 and resistance at $1860 per ounce. MCX Gold August futures support lies at Rs 50500 and resistance at Rs 51100 per 10 grams.
Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities
With the US dollar index saving off its gains, the gold prices have witnessed a small bounce back. That said, the US 10-year treasury yields rose, capping the upside of gold prices. It’s getting difficult to second guess the intended policy action of global central banks, which is keeping the gold markets range bound. While the high inflationary environment is ideal for gold, which is a traditional hedge against inflation, a buoyant bond markets has dented the appeal of a non interest yielding asset like gold. Thus, we expect the range bound movement to continue.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
