India Gold MCX August futures trade flat on Tuesday tracking muted trend in the international spot prices as an uptick in the dollar dented the safe-haven metal’s appeal.
Investors await the US Federal Reserve meeting for clues on the central bank’s monetary policy outlook, said a Reuters report. Spot gold was at $1,861.96 per ounce, after falling to its lowest since May 17 to $1,843.99 on Monday.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading lower by 0.07 percent at Rs 48,490 for 10 grams at 0930 hours. July silver futures were trading 0.8 percent lower at Rs 71,290 a kilogram.
Gold and silver prices struggle again on Monday and settled on a weaker note amid gains in the cryptocurrencies and rebound in the 10-year benchmark yield in the United States.
Gold August futures contract settled at $1865.90 per troy ounce, and silver July futures contract were settled at $28.04 per troy ounce. Both the precious metals settled on a weaker note in the domestic markets.
“Gold and silver prices slipped on Monday ahead of the U.S. Federal Reserve policy meeting. A rebound in the cryptocurrencies after a statement of Allen Musk to accept cryptocurrencies after its mining is completed also led to fall in precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research said.Track Live Gold Prices here
“The U.S. Federal Reserve two-day policy meeting starts from today. We expect both the precious metals to remain volatile in Tuesday’s session and could face steep resistance at higher levels,” he said.
Jain suggests selling on rise in gold around 48700 with a stop loss of 48920 for the target of 48300 and in silver around 72200 with a stop loss of 72700 for the target of 71200.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX gold trades marginally lower near $1864/oz after a 0.7% decline on Monday. Gold remains pressurized by a recovery in US bond yields as market players’ position for Fed decision. ETF investors also moved to the sidelines.
However, supporting price is choppy equities, rising inflation concerns, and persisting virus concerns. Gold has already corrected sharply in anticipation of the Fed's hawkish stance so we may see range-bound and choppy trade ahead of the decision.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold prices extended losses on Monday as speculators shorted the yellow metal on rising confidence that the Federal Reserve would indicate at its policy meeting this week some kind of timetable for the tapering of its asset purchases to support the U.S. economy.
Silver recovered from the session lows to end flat on Monday. Domestic gold and silver ended in the red on Monday, tracking overseas prices.
Domestic gold and silver prices could start weaker on Tuesday morning, tracking overseas prices.
On the domestic front, if MCX Gold August trades below 48500 levels we could witness a continuation of Bearish momentum up to 48350-48000 levels. Resistance is at 48600-48800 levels.
MCX Silver July holds support near 71100-70500 levels. Resistance is at 72000-73200 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Traders are advised to create long positions in a gap-down opening near the support level and should focus on important technical levels given below for the day:
August Gold closing price 48,523: Support 1 - 48100, Support 2 - 47800, Resistance 1 - 48900, Resistance 2 - 49250
July Silver closing price 71,879: Support 1 - 71000, Support 2 - 70000, Resistance 1 - 72550, Resistance 2 - 73450Disclaimer
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