Gold bounced back on June 18 morning in the Indian market on positive trends in international spot prices. On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.32 percent at Rs 47,109 for 10 grams at 0930 hours. July silver futures were trading 1 percent higher at Rs 68,296 a kilogram.
Experts advise investors to create long positions on dips.
Gold and silver crashed vertically the previous day after the US Federal Reserve signalled raising interest rates in 2023. Both the precious metals settled on a weaker note in the international markets.
August gold futures contract settled at $1774.80 a troy ounce and silver July at $25.86 a ounce.
The 10-year benchmark yields slipped again to 1.51 levels. Despite the decline in the bond yield due to a strong comeback in the dollar, heavy profit-taking was observed in both metals, experts said.
After a sharp fall in both precious metals, some relief rally is expected on June 18. "Gold has support at $1,762-1,750 per troy ounce and resistance at $1,792-1,810 per troy ounce; silver is having support at $25.55-25.20 per troy ounce and resistance at $26.30-26.88 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
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“At MCX, gold has support at 46,660-46,400 and resistance at 47,200-475,50; silver is having support at 67,100-66,600 and resistance at 68,200-68,800 levels,” he said.
Jain suggested buying gold at Rs 46,800 with a stop loss of Rs 46,600 for a target of Rs 47,300 and in silver around Rs 67,200 with a stop loss of Rs 66,600 for the target of Rs 68,500.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX gold was trading 0.5 percent higher near $1,783/oz after a sharp 4.7 percent decline the previous day when it slumped to its April lows.
Gold edged up on dip buying and a pause in the US dollar’s recent gains, renewed virus concerns, and mixed economic data.
However, Fed’s monetary tightening expectations and weaker investor interest, as evident from ETF outflows, weighed on the price.
Gold was seeing relief rally but general bias may remain on the downside unless the dollar corrects sharply.
Abhishek Chauhan Head Commodities & Currencies, Swastika Investmart Ltd
Gold witnessed a steep fall of almost 5 percent to head back to the mid-$1,700 level last seen in April as a rally in the dollar index which is near 92 wrecked commodities prices.
Bearish momentum may continue in gold and silver and any rise in price could witness selling pressure. Gold has support at 46,800-46,600 and resistance at 47,400-47,750.
Below 46,600, gold may test 45,800. Silver has support at 67,800 below which the price may fall to 66,900-66,000. It has resistance at 69,300-70,000.
Sriram Iyer, Senior Research Analyst, Reliance Securities
International spot gold and silver prices extended losses on June 17 as the dollar extended gains after the Fed announcement.
Domestic gold and silver crashed as well after opening gap down, tracking overseas prices. The dollar index surged higher and ended near the 92 level after two months.
Domestic gold and silver prices could start marginally higher on June 18, tracking overseas prices but the upside will be capped. On the other hand, a weaker rupee can cap the downside.
MCX August gold will continue its bearish momentum below 47,000. Support is at 46,800-46,600 and resistance at 47,180-47,300.
MCX July silver holds support near 67,300-66,500 and resistance at 68,700-69,500.
Amit Khare, AVP-Research Commodities, Ganganagar Commodities Limited
Gold and silver showed a huge down movement on June 17. Traders are advised to create long positions in bullion and traders should also focus on important technical levels given below for the day:
August gold closing price: Rs 46,958, support 1: 46,700, support 2: 46,200, resistance 1: 47,250; resistance 2: 47,750
July silver closing price 67,599, support 1: 67,500, support 2: 66,900, resistance 1: 68,100 and resistance 2: 68,700Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.