India Gold August Futures rose on June 29 following positive trend in the international spot prices which were trading higher as worries over a surge in fresh COVID-19 infections globally dented investor optimism and drove investors towards the safe-haven metal.
The relentless spread of the coronavirus intensified investor fears about a delay in global economic recovery and weighed on risk appetite, driving inflows into safe-haven assets, said a Reuters report.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.25 percent at Rs 48,425 per 10 gram at 09:20 hours. July futures for silver were trading 0.46 percent higher at Rs 48,589 per kg.
Gold and silver gained last week in international as well as domestic markets. In the international market, Gold prices tested $1,796 per troy ounce for the first time since October 2012 at Comex division and settled at $1,780.30 per troy ounce with 1.54 percent weekly gains.
At MCX, Gold prices settled at Rs 48,305 with weekly gains of 0.77 percent. Silver September futures contract settled at Rs 49,219 with weekly gains of 1.77 percent.
Gold & Silver Rates Jun 24, 2022
“Both the precious metals gained after a record number of coronavirus patients detected in the US in last week. Around 40,000 patients are detected in the last five days, investors turned cautious and some profit-taking is also seen in global equities,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.
“Despite the rise in Dollar index safe-haven demand is seen in both the precious metals. We expect both the precious metals remain firm this week and buy on dip strategy will work for both the precious metals,” he said.
Jain further added that if gold prices sustain above Rs 48,480 then the rally could extend towards Rs 48,850-49,100 levels. Strong support is seen at Rs Rs 47,650 on a closing basis for the gold.
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International bullion prices have started higher this Monday morning in Asian trade extending gains from Friday amid safe-haven appeal for the metals due to rise in COVID-19 cases.
Domestic bullion could trade higher this Monday morning, tracking a positive start in the international markets.
Technically, MCX Gold August contract traded on a positive note where it closes above Rs 48,300 levels indicating bullish momentum up to Rs 48,550-48,760 levels. Support is placed on Rs 48,000-47,700 levels.
MCX Silver July traded in Rs 47,418-48,639 levels range where it has bounced from Rs 47,400 levels and closed on some positive note. Still, downside momentum to continue and prices can trade in a range of Rs 46,800-48,900 levels.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades moderately higher near $1,785/oz after a 0.5 percent gain in the previous session. Gold tested the highest level since 2011 last week but has turned choppy in the last few sessions amid its struggle to break past the key $1,800/oz level.
Increased risk aversion has also increased safe-haven appeal for the US dollar and this has kept a check on the upside in the gold price.
Gold may continue to witness choppy trade with a key focus on the key $1,800/oz level however the general bias may be on the upside unless we see a significant improvement in risk sentiment.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.