India’s August gold futures retreated from highs on July 29 tracking muted trend in the international spot prices ahead of the US Federal Reserve's meeting.
Spot gold was little changed at $1,957.84 per ounce by 0049 GMT. Prices hit an all-time of $1,980.57 on July 28 before retreating after investors booked profits and the dollar regained some ground, a Reuters report.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading lower by 0.15 percent at Rs 52,513 per 10 gram at 0920 hours. September futures for silver were trading 0.05 percent lower at Rs 64,970 per kg.
As long as gold stays above Rs 52,500, the bulls can take the price towards Rs 53,000 per 10 gm, say experts.
It was a roller-coaster day for gold and silver on July 28. Both precious metals gained in early trading and gold hit a fresh high in the international market at $1,970 per troy ounce and silver also tested $26 per troy ounce.
“Ahead of US Federal Reserve meeting outcome today both the precious metals remain volatile. However, analysts are expecting the dovish stance of US federal reserve on interest rates,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“US bond yields slipped again. The weakness in the dollar index, geopolitical tensions, and uncertainty in the global economy amid rising coronavirus cases will continue to support both the precious metals,” he said.
Jain added if gold sustains above 52,500, it can extend gains towards 52,770-53,000 levels, with 52,200 acting as a major support on a closing basis.
If silver holds above 65,200, it can extend gains to 66,300-67m000 levels, with 64,000 acting as a major support on a closing basis.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold had a volatile session on July 28 and traded in a $70 range. However, prices ended the session higher. Silver was also volatile and traded in $4 range to end the session marginally lower.
The US dollar rebounded from a two-year low ahead of the two-day Fed meeting and capped gains.
Technically, the MCX Gold October contract had a volatile session where it traded in the 51,459-52,762 range at an all-time high.
Moreover, it ended above 52,700, indicating that volatility will continue in the coming sessions. Resistance holds at 52,900-53,160 level and support is at 52,200-51,900.Disclaimer
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