India Gold MCX August Futures trade flat with a negative bias on Friday tracking muted trend in the international spot prices but are headed for the fourth straight weekly gains.
Spot gold was flat at $1,829.14 per ounce, but gained 1.2% so far this week. Investors took comfort from Federal Reserve Chair Jerome Powell’s stance that the U.S. central bank would continue to support the economy and inflation will be transitory, said a Reuters report.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.06 percent lower at Rs 48,369 for 10 grams at 0930 hours. September silver futures were trading 0.21 percent higher at Rs 69,830 a kilogram.
Gold and silver gained on Thursday amid fall in the U.S. bond yields and a third wave of coronavirus in many countries. Both precious metals settled on a positive note in the international markets on Thursday.
Track live gold price here
Gold August futures contract were settled at $1829 per troy ounce, and silver September futures contract settled at $26.39 per troy ounce. Both precious metals settled on a positive note in the domestic markets on Thursday.
Gold and silver showed follow-through buying on Thursday amid falling bond yields in the United States after the U.S. Federal Reserve Chairman Jerome Powell’s dovish remark in his testimony before the House of Representatives on Wednesday. There is no new remark from him in his Thursday’s testimony.
“We expect both the precious metals to remain volatile in today’s session and continue to hold its support levels. At MCX, Gold has support at 48220-48000 and resistance at 48660-48850 levels; silver is having support at 69200-68800 and resistance at 70100-70700 levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“We suggest buying in gold around 48220 with a stop loss of 47980 for the target of 48700 and in silver around 69400 with a stop loss of 68800 for the target of 70500,” he said.
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX gold trades marginally lower near $1827/oz. after a 0.2% rise in previous session. Gold rose as high as $1833.1/oz. in intraday trade yesterday, the highest level since mid-June.
Gold rose in intraday trade yesterday amid weaker US Dollar and softening US 10 yr. bond yields as uncertainty on Fed’s stance on tapering bond purchases weigh.
The U.S. Treasury yields continued its slide as it fell to one-week lows as Federal Reserve Chair Jerome Powell in his testimony before Congress, for the second day, maintained that rising inflation is likely to be transitory and that the U.S. central bank would continue to support the economy.
Although the general bias is on the upside one has to be cautious as any uptick in dollar might pressurize gold.
Sandeep Matta, Founder, TRADEIT Investment Advisor
Gold is witnessing follow-up buying during the day and trading near to its 100 DEMA level on the basis Fed chair’s statement that rising inflation pressures are transitory.
The yellow metal is entering into a seasonal demand period and will try to find fundamental support in a low interest scenario. Gold prices will find new momentum and speculative interest once it starts closing above $1835 an ounce mark.
Gold on MCX is also trading positive and eyeing to cross 48500 level. The sentiments are bullish however we advise new entrants to wait for some correction before making a fresh entry.
Existing market participants should trail their stop loss and/or must have some hedging against their buying position.
Key level for GOLD AUG Contract – 48354
Buy Zone Above – 48360 for the target of 48510-48625
Sell Zone Below – 48350 for the target of 48225-48175
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold ended marginally in the green on Thursday, spurred by U.S. Federal Reserve Chair Jerome Powell's dovish comments and some concerns over a slowdown in global economic recovery.
International silver prices also ended with small gains on Thursday, tracking gold prices. Domestic gold and silver prices ended with gains on Thursday, tracking overseas markets.
Domestic gold and silver prices could start flat Friday, tracking subdued international prices.
Technically, MCX Gold August has crossed above 200-DMA which is placed at 48200 levels with increase in volume activity where if sustain could see upside momentum up to 48570-48800 levels.
MCX Silver September above 69500 levels could see a Bullish momentum up to 70900-71600 levels. Support is at 69200-68500 levels.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.