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Gold Prices Today: Yellow metal to witness further selling pressure, support around Rs 50,740–50,510

Gold has support at Rs 50,740–50,510, resistance at Rs 51,180–51,350. Silver has support at Rs 61,080-61,550 and resistance is at Rs 62,680–63,110, said Rahul Kalantri, VP Commodities at Mehta Equities.

May 31, 2022 / 09:49 AM IST
Gold, gold prices

Gold, gold prices

Gold prices fell on May 31 in the international markets as US bond yields firmed and the dollar strengthened, with bullion heading for a second straight monthly loss for the first time since March 2021.

At 9:36am, gold contracts declined marginally by 0.03 percent to Rs 50,901 for 10 gram on the Multi-Commodity Exchange (MCX) while silver shed 0.64 percent at Rs 61,489 a kilogram.

Precious metals remained range-bound yesterday due to the holiday in the US market. US Dollar index and bond yield eased supporting gold and silver prices. Today, the day is full of data that will increase the volatility in precious metals. However, the prices of precious metals may remain supportive at lower levels due to short-term weakness in the US dollar index. Gold August contract has support at Rs 50800 and resistance at Rs 51300. Silver has support at Rs 61000 and resistance and Rs 62500, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

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Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver prices have dropped from their morning session's highs but continue to hold support above $1,850 an ounce. Bullion prices' upside were capped amid upside in European stocks and US futures gaining on Monday after China relaxed some of the virus related curbs.

Overall, gold and silver prices are likely to witness further selling but the downside appears limited. Gold has support at $1838-1824, while resistance is at $1862-1874. Silver has support at $21.55-21.40, while resistance is at $22.10-22.35. In rupee terms gold has support at Rs 50,740–50,510, resistance at Rs 51,180–51,350. Silver has support at Rs 61,080-61,550 and resistance is at Rs 62,680–63,110.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Gold prices traded weak on Tuesday with spot gold prices at COMEX were trading 0.21% down near $1852 per ounce in the morning trade. The yellow metal declined with firm dollar index and rally in US bond yields. The 10-year US Treasury yields rose by more than 3% to 2.83% on Tuesday. The string Asian indices also capped upside in gold prices with China recovery optimism.

We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1840 and resistance at $1870 per ounce. MCX Gold Aug support lies at Rs 50800 and resistance at Rs 51400 per 10 gram.

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.​
Sandip Das
first published: May 31, 2022 09:49 am
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