India Gold August Futures eased after a strong rally seen in the previous session on June 9. Re-opening of the global economy, as well as gains in global equities, is likely to dampen appetite for the yellow metal and cap the upside potential which could face resistance near 46,300 per 10 gm.
On MCX, June gold contracts were trading lower by 0.15 percent at Rs 46,034 per 10 gram at 09:20 hours. Silver July futures were trading 0.16 percent lower at Rs 48,109 per kg.
International gold prices were trading with a positive bias as the US dollar hovered near a three-month low and amid fears of a deep economic fallout from the coronavirus crisis, while investors focused on the US Federal Reserve meeting for clues on policy measures, said a Reuters report.
Gold and silver prices rebounded on Monday from their lows to test the immediate resistance in the international market. Gold closed above $1,700 per troy ounce and silver also closed above $17.84 per troy ounce on Monday.
“Gold prices gained around 1 percent and silver gained around 2 percent on the first trading session of the week. Re-opening global economy and gains in global equities will restrict further gains in precious metals,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.
“We expect both the precious metals remain volatile in today's session. Gold is expected to be traded in the range of $1,684-1,715 per troy ounce. At MCX, it is expected to be traded in the range of 45,800-46,330 range,” he said.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
Bullion rose on Monday after the previous session's steep fall, boosted by hopes of dovish monetary policy from the US Federal Reserve.
International bullion prices have started flat this Tuesday morning in Asian trade ahead of the US Fed meeting on Wednesday.
Technically, LBMA GOLD Spot had a volatile session where prices bounced from its multiple support level around $1,680-$1,683.
However, a breakout above $1,705 is awaited with good volume activity for further upside movement up to $1,715-$1,726. Moreover, prices are intact to trade in a range of $1,683-$1,715 in the coming sessions.
MCX Gold August contract gave a positive closed above 46,000 levels where it did not breach 45,700 levels indicating some positive breath in the counter. However, it can see resistance at 46,300-46,550 levels.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher near $1,705/oz after a 1.3 percent gain yesterday. Gold has bounced back after taking support near $1,680/oz. Mixed economic data, choppy US dollar, US-China tensions, and stimulus measures supporting price.
Firmness in the equity market and weaker investor interest keep a check on the price. Despite the recent correction, gold continues to hold in a broad range of $1,680-1,750/oz.
We may see range-bound trade ahead of the FOMC decision this week however general bias may be on the downside owing to strength in the equity market.
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