Gold was trading lower in the Indian market on July 12, tracking a muted trend in international spot prices as investors wait for US inflation data due this week and Federal Reserve Chair Jerome Powell’s testimony.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.42 percent lower at Rs 47,732 for 10 grams at 0930 hours. September silver futures were trading 0.34 percent lower at Rs 69,061 a kilogram.
The market will keep a close eye on consumer price index data expected on July 13 and Powell’s appearance before Congress on July 14 and 15 for cues on policy tightening by the central bank, a Reuters report said.
On July 9, gold and silver prices settled on a positive note in the international market. August gold futures contract settled at $1,808.55 a troy ounce and silver September futures contract settled at $26.19 per troy ounce. Domestic markets also settled on a positive note.
International gold gained in the previous week to close above $1,800 per for the first time in last three weeks. Gold prices remained up for the third consecutive week in the international market.
Gold and silver gained amid weakness in the dollar index after the US Federal Reserve monetary policy meeting minutes were released last week, experts said. People’s Bank of China also cuts its RRR surprisingly by 50 basis points on July 9 and supported precious metals.
“Political tensions between the US and China have ratcheted up this year, with reports saying the US is set to sanction more Chinese companies. We expect gold and silver prices to remain volatile this week and gold prices could test $1,840 per troy ounce and silver prices could also test $27 per troy ounce levels again,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“At MCX, gold has support at 47,700-47,550 and resistance at 48,180-48,440. Silver has support at 68,800-68,400 and resistance at 69,800-70,300 levels,” he said.
Jain suggests buying in gold at around Rs 47,700 with a stop loss of 47,480 for the target of 48,200 and in silver around Rs 68,800 with a stop loss of 68,200 for the target of 69,900.
Technical indicators
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold and silver prices ended higher on July 9, tracking weakness in the dollar and safe-haven appeal for the metals amid a rise in delta variant cases of the coronavirus.
Domestic gold and silver rose, tracking overseas prices. However, the further upside was capped amid a rebound in the yields.
Domestic gold and silver prices could start marginally in the green on July 12, tracking overseas prices.
Technically, MCX August gold holds strong support near Rs 47,800-47,600 levels. Resistance is at Rs 48,100-48,300 levels.
MCX September silver holds a resistance 50-DMA near Rs 70,480 levels above which could see a bullish momentum up to 71,200-72,100 levels. Support is at 68,500-67,900 levels.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
COMEX gold was trading marginally lower near $1,805/oz after gaining 0.6 percent on July 9. Gold eased as US bond yields came off the lows amid stability in equity markets.
Also weighing on price is weaker investor interest and Fed’s monetary tightening expectations. However, supporting price is the rising virus concerns, US-China tensions and inflationary worries.
Gold may remain choppy amid a lack of fresh cues, however, growing challenges may improve safe-haven appeal.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and silver showed some profit-booking on the hourly chart. The momentum indicator RSI is also facing resistance near 55-60 levels on the hourly chart.
Traders are advised to create short positions in bullions near given resistance levels. Traders should also focus on important technical levels given below for the day:
August Gold closing price Rs: 47,923, support 1: 4,7700; support 2: 47,500; resistance 1: 48,121 and resistance 2: 48,350.
September Silver closing price: Rs 69,297, support 1: 68,700, support 2: 68,100, resistance 1: 69,900 and resistance 2: 70,450.
Abhishek Chauhan Head Commodities & Currencies, Swastika Investmart
Gold prices witnessed some buying pressure amid profit booking in the dollar index may keep the demand in gold and silver intact.
Comex gold above $1,800 will move towards $1,830, while the US bond yield has given a bounce from lower levels and it is likely to rebound from current levels.
Prices of gold in India may face resistance near 48,000 and the day trends may remain range-bound. Silver prices may witness selling pressure if it rises towards Rs 70,000, while it may get some support near to Rs 68,000.
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