Gold prices in India were holding steady above Rs 53,800 per 10 gm on August 4 despite a muted trend in international spot prices.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.07 percent at Rs 53,821 per 10 gram at 0920 hours. As long as the yellow metal hold 53,700 levels, the upside is likely to continue, experts say.
September futures for silver were trading 0.2 percent higher at Rs 65,889 per kg.
Both gold and silver traded sideways in the international market the previous day amid gains in the dollar index and better than expected US manufacturing PMI data. The dollar index climbed again and crossed 93.50 levels and capped gains in precious metals.
Gold October futures contract settled with gains of around 0.50 percent around 53700 levels and silver settled with a gain of 1.22 percent around 65750 levels.
Despite gains in the dollar index and better than expected US manufacturing PMI, both the precious metals remained firm.
“Global investors are shifting to safe-haven assets and holding in gold and silver ETF reached record highs. We expect both the precious metals to remain firm and any the prices will be the opportunity to go long,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“On MCX, October gold futures contract has strong support at 53,220 on a closing basis and is expected to hold. If it sustains above 53,700, it can extend gains towards 53,880-54,055 levels,” he said.
Jain added that MCX silver had strong support at 64,400 on a closing basis. If silver sustains above 65,800, then it could extend gains to 66,700-67,500 levels.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver ended weak on August 3 after the dollar strengthened and investors booked some profits, with the focus now on proposals for a new coronavirus relief to jobless Americans.
Technically, LBMA spot gold traded in the $1,960-$1,985 range, where it ended on a positive note above $19,70. Gold has been trading with huge volatility. Resistance is at $1,986-$1,998, while support is placed at $1970-$1958 levels.
Technically, MCX October gold contract had traded in the 53,429-53,845 range. Though it is a narrow range it managed to hit an all-time high.
It ended above 53,700, indicating that volatility in the coming sessions. Resistance holds at 53,950-54,150 and support is at 53,400-53,150 levels.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex December gold contract was trading moderately higher near $1,990/oz after a flat close the previous day .
In the domestic market, the MCX gold August contract hit a high of Rs.54199 per 10 gram on August 3, the highest price on record for a first-month contract.
The US-China tensions, rising virus cases, and ETF inflows lent support to the price. However, some recovery in the dollar and upbeat economic data weighed on the price.
Gold has turned choppy amid mixed factors but the general momentum is still positive given the challenges to the global economy and strong investor interest.
Disclaimer: 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.
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