India August gold futures rose on July 28 tracking positive trend in the international spot prices, which were hovering near $2,000 an ounce, boosted by a weaker dollar and expectations of a long, dovish stance from the US Federal Reserve.
Spot gold was up more than 1 percent at $1,969.76 per ounce after scaling a fresh peak of $1,980.57 in early Asian trade, said a Reuters report. Silver also surged over 6 percent to $26.19 per ounce, its highest since April 2013.
Bullion gains came despite an uptick in equities as investors focus on the Fed’s two-day policy meeting ending July 29, the report added.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.4 percent at Rs 52,332 per 10 gram at 0920 hours. September futures for silver were trading 1.8 percent higher at Rs 66,726 per kg.
Gold and silver skyrocketed on July 27. Gold gained more than 2 percent to reach fresh highs in the international and domestic markets. Gold settled at $1,931 per troy ounce at Comex division and around at Rs 52,200 in the domestic market.
Gold & Silver Rates Jul 03, 2022
Silver prices also gained around 7 percent and settled at $24.50 per troy ounce at the Comex division and around Rs 65,700 in the domestic market.
Experts say the momentum is likely to continue. As long as prices sustain above Rs 52,330, the upmove can extend towards Rs 52,900 levels, they say.
“Tensions between the US and China, the surge in coronavirus cases and slower global economic growth is already supporting prices of both the precious metals. We expect both the precious metals to remain firm and to gain further,” said Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart.
On MCX, if gold sustains above 52,330, it can extend gains towards Rs 52,660-52900 levels, 51800 will act as major support on a closing basis, he said.
If silver holds above $24.80, it can extend gains towards $25.40-26, with $24.20 acting as a major support on a closing basis.
Jain said investors should hold long positions with given stop loss and avoid short selling. “On MCX, if silver sustains above 66,200, it can extend the gains towards 68000-69200 levels, with 64,800 acting as major support on a closing basis,” he added.
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver surged higher on July 27 and extended gains on July 28 morning in Asian trade, supported by stimulus expectations and a weak dollar.
The Fed's policy-setting Federal Open Market Committee meets July 28-29, with no major announcements expected. However, it could lay the groundwork for more action in September or in the fourth quarter.
Domestic gold and silver surged higher on July 27, tracking firm overseas prices. Domestic bullion could firm up on July 28, tracking a firm start in the overseas markets.
Technically, the MCX October gold contract had a volatile session with a gap up open where it traded in the range of 51,940-52,400 levels as it was trading at an all-time high.
It ended above 52,300, indicating volatility will continue in the coming sessions. Resistance holds at 52,500-52,660 level and support is at 52,150-51,800 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.