Gold prices in India rose on July 30 as hopes of fresh policy easing measures from central banks, coronavirus uncertainty, a weak US dollar and escalating geopolitical uncertainties lifted the sentiment for the yellow metal.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.25 percent at Rs 53,320 per 10 gram at 0920 hours. September futures for silver were trading 0.14 percent lower at Rs 65,260 per kg.
At the end of its two-day policy meeting on July 29, the Fed said it will keep its interest rate target range until it was confident that the economy had weathered the COVID-19 pandemic and was on track for maximum employment and price stability goals, a Reuters report said.
“Gold’s bullish outlook will remain intact due to increased demand for safe assets amid surging pandemic cases and a weaker US dollar,” Hareesh V, Head Commodity Research at Geojit Financial Services told Moneycontrol.
“Hopes of fresh policy easing measures from central banks and escalating geopolitical uncertainties also lifted the sentiments of the yellow metal. However, immediate profit-taking cannot be ruled out due to weak physical demand and record-high prices.”
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Gold and silver remained steady in the international market on July 29. Gold gained around 0.50 percent and settled at $1,953.40 per troy ounce, silver made minor gain at $24.32 per troy ounce.
Experts say as long as gold holds above Rs 53,330, an upside towards 53,550 and 53,700 is possible. Investors should use dips to buy. The first support for the yellow metal is placed at 53,000 per 10 gm.
“Due to some weakness in the rupee, gold gained more than 1 percent and after making fresh lifetime highs of 53,399 settled at around 53,300 levels. Both the precious metals remain firm amid weakness in the dollar index, as the dollar index slipped below 96.40 levels. US Federal Reserve also kept key interest rates unchanged at 0 percent-0.25 percent,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, if gold sustains above 53,330, it can extend the gains towards 53,550-53,700 levels, 53,000 will act as a major support on a closing basis. If silver sustains above $24.20, it can extend gains towards $24.55-24.80, with $23.80 acting as a major support on a closing basis,” he said.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold ended with gains, while silver ended marginally weak on July 29. The Federal Reserve kept its policy and rate matrix unchanged at the July meeting between 0 percent and 0.25 percent, as expected.
Domestic gold and silver had a volatile session but ended higher on July 29. Domestic bullion could start flat to marginally weak on July 30, tracking a weak start in the overseas markets.
Technically, MCX October gold contract had a volatile session where it moved in the 52,400-53,088 range as it was trading at an all-time high.
Moreover, it ended above 53,000, indicating that volatility will continue. Resistance holds at 53,600-54,500 level and support is at 52,300-51,900 levels.
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