India Gold MCX October futures trade flat-to-lower on Tuesday tracking muted trend seen in the international spot prices which were hovering near $1800 per ounce.
Spot gold eased 0.2% to $1,801.78 per ounce, having jumped about 1.4% in the previous session. U.S. gold futures were little changed at $1,804.90.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.18 percent lower at Rs 47,499 for 10 grams at 0930 hours. September silver futures were trading 0.21 percent lower at Rs 62,792 a kilogram.
Gold and silver prices gained on Monday amid weakness in the dollar index. Both the precious metals settled on a positive note in the international markets.
Gold December futures contract settled at $1806.30 per troy ounce, and silver September futures contract settled at $23.66 per troy ounce. Both the precious metals were also settled on a positive note in the domestic markets.
“Concerns of delta variant of the virus could impact global economic recoveries in coming months and supports both the precious metals. Geo-political tensions in the middle-east could also support precious metal prices,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“We expect gold and silver could show further strength in upcoming sessions. At MCX, Gold has support at 47330-47100 and resistance at 47770-47920; silver is having support at 62500-62200 and resistance at 63300-63900 levels,” he said.
Jain suggests buying in gold on dips around 47330 with a stop loss of 47100 for the target of 47800 and in silver around 62500 with a stop loss of 61900 for the target of 63600.
Technical indicators
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally lower near $1805/oz after a 1.3% gain on Monday. Gold steadied as the US dollar index paused after yesterday’s decline.
Supporting price is reduced expectations of Fed’s monetary tightening post comments from Dallas Fed President Robert Kaplan, mixed economic data from major economies, tensions relating to Afghanistan, and persisting virus concerns.
Weighing on price is continuing ETF outflows and recovery in equity markets. Gold's break above $1800/oz shows positive momentum however gains may be limited if bulls fall in keeping it above $1800/oz.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot and futures gold prices ended above the $1800/ounce mark on Monday as a retreat in the dollar pushed investors to gold.
International spot and futures silver prices ended in the green on Monday, tracking the weakness of the dollar. Domestic gold and silver ended higher on Monday, tracking overseas prices.
On the domestic front, MCX Gold October could see sideways to marginal upside momentum where support is at 47450-47300 levels resistance is at 47650-47800 levels.
MCX Silver September above 62500 levels could see 63200-63900 levels. Support is at 62000-61400 levels.
MCXBULLDEX May could trade on a Bullish note within the range of 14050-14400 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
We saw a short-covering rally on both Gold and Silver on Monday which may continue for the next few trading sessions.
Traders are advised to create fresh longs positions in Gold and Silver on small dips, and should also focus on important technical levels given below for the day:
August Gold closing price 47584: Support 1 - 47300, Support 2 - 47000, Resistance 1 - 47850, Resistance 2 - 48100.
September Silver closing price 62927: Support 1 - 62250, Support 2 - 61600, Resistance 1 - 63600, Resistance 2 - 64260.
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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