India Gold MCX June futures were trading above Rs 49000 per 10 gm on Wednesday tracking positive trend seen in the international spot prices which remained firm near a 4-1/2-month high amid a drop in U.S. Treasury yields and a weaker dollar that supported the safe-haven metal.
Spot gold was steady at $1,899.11 per ounce, after hitting its highest since January 8 at $1,899.11 on Tuesday, said a Reuters report. The dollar index was pinned near a 4-1/2-month low against its rivals, making gold cheaper for other currency holders.
Gold and silver extended gains on Tuesday amid disappointing U.S. consumer confidence and new home sales data. Both precious metals settled on a positive note in the international markets.
Gold June futures contract settled at $1898.00 per troy ounce, and silver July futures contract settled at $28.05 per troy ounce. Both precious metals settled on a positive note in the domestic markets as well.
“Gold settled nearly 4-1/2 month highs and inching closer to $1900 per troy ounce and silver prices also crossed $28 per troy ounce levels. We expect both the precious metals to remain volatile in Wednesday’s session,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research, said.
“Gold has support at $1888-1872 per troy ounce and resistance at $1910-1922 per troy ounce. On MCX, gold has support at Rs 48660-48400 and resistance at Rs 49050-49200,” he said.
Jain suggests buying gold on dips around Rs 48660 with a stop loss of Rs 48400 for the target of Rs 49050. He also suggested buying silver around Rs 71700 with a stop loss of Rs 71000 for the target of Rs 73000.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold rose on Tuesday, hitting a high near $1,900 an ounce, as data showed monthly declines in U.S. consumer confidence and new home sales, boosting the precious metal’s appeal as a haven investment.
Domestic gold and silver ended the session with modest gains on Tuesday, tracking overseas prices. The U.S. consumer confidence survey slipped to 117.2 in May from a revised 117.5 in the prior month, while new home sales, fell by nearly 6% in April.
Domestic gold and silver prices could trade flat-to-marginally-higher this Wednesday morning tracking overseas prices.
Technically, MCX Gold June could see a bullish momentum up to Rs 49060- Rs 49250 levels. Support is at Rs 48800-48600 levels. If MCX Silver July sustains above Rs 72000 levels, we could witness the price test the resistances zones at Rs 73100 and Rs 74000. However, a trade below Rs 72000 could pull prices to the supports at Rs 71500 and further down to Rs 70700.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and silver current year trend is positive, and traders are advised to go long and focus some important technical levels given below:
June Gold closing price Rs 48,867, Support 1 - Rs 48550, Support 2 - Rs 48250, Resistance 1 - Rs 49180, Resistance 2 - Rs 49480.
July Silver closing price Rs 72,140, Support 1 - Rs 71400, Support 2 - Rs 70500, Resistance 1 - Rs 72900, Resistance 2 - Rs 73900.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades 0.4% higher near $1906/oz after a 0.7% gain yesterday. Gold has jumped to January highs amid mixed US economic data, dovish Fed comments, weaker US dollar, choppy equities, and pickup in ETF buying.
However, weighing on price are concerns about Indian demand and easing geopolitical tensions. Building on the gains noted in the last few weeks, gold has breached the key $1900/oz level indicating strong upward momentum however any stability in the equity market or US dollar may be enough to trigger a profit-taking move.Disclaimer
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