Gold price today: Yellow metal rises; likely to trade in a range of 47,700-48,500

India Gold August Futures rose marginally on July 7 but experts feel that the trade is likely to remain rangebound tracking muted trend in the international spot prices.

The yellow metal has crucial support near 48,000-47,700 while on the upside critical resistance is placed Rs 48,550 per 10 gm.

On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.03 percent at Rs 48,240 per 10 gram at 09:20 hours. July futures for silver were trading 0.05 percent lower at Rs 49,765 per kg.

Both the precious metals opened on a weaker note on Monday due to fresh stimulus talks in the US and record gains in global equity markets. But, weakness in the dollar index, rising coronavirus cases, geo-political tensions support prices of both the precious metals at lower levels.

At MCX, gold settled around Rs 48200 and Silver settled around Rs 49,750 levels in the previous session. “We expect both the precious metals remain volatile due to volatility in global financial markets and further weakness in dollar index will support both the precious metals,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.

“Gold is having support at $1,772 per troy ounce/Rs 47,700 on a closing basis and expected to hold it if prices sustain above $1,788 per troy ounce/Rs 48,200 could extend the gains towards $1,800-1,814 per troy ounce /Rs 48,330-48,550 levels,” he said.

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Expert: Sriram Iyer, Senior Research Analyst at Reliance securities

International spot gold and silver-finished higher on Monday with gold futures finishing at their highest prices in nearly a week, supported in part by a softer US dollar, even as global stocks rallied.

Technically, LBMA GOLD Spot had a volatile session where it traded in a range of $1,770-$1,786 levels where it had bounced back from its $1,770 support level and started to trade above $1,785 levels. Resistance is at $1,794-$1,804 levels and Support is at $1,773-$1,757 levels.

On the domestic front, A strong rupee could limit gains.

Technically, the MCX Gold August contract bounced back from Rs 47,775 levels and gave a closed above Rs 48,200 with positive sessions. However, volatility will continue to keep prices in a range of Rs 47,700-48,500 levels.

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