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India Gold MCX October futures trade flat on Tuesday following muted trend seen in international spot prices amid a strong dollar. But a rise in Delta variant cases will offer support.
Spot gold was little changed at $1,787.90 per ounce, after hitting its highest since Aug. 6 at $1,788.97 on Monday. U.S. gold futures eased 0.1% to $1,788.40, said a Reuters report.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.02 percent higher at Rs 47,234 for 10 grams at 0930 hours. September silver futures were trading 0.23 percent higher at Rs 63,603 a kilogram.
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Gold and silver extended gains on Monday on weaker than expected Chinese retail sales and industrial production data for the month of July. Both the precious metals settled on a positive note in the international markets.
Gold December futures contract settled at $1789.80 per troy ounce and silver September futures contract settled at $23.79 per troy ounce. Both the precious metals were also settled on a positive note in the domestic markets.
The dollar index was steady on Monday but the benchmark 10-year bond yield slipped again and also supported both the precious metals.
“We expect both the precious metals to remain volatile but continue to hold its support levels and any decline in the prices would be an opportunity for buying at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“At MCX, gold has support at 47,000-46,800 and resistance at 47,330-47,580; silver has support at 63,100-62,600 and resistance at 63900-64400 levels,” he said.
Jain suggests buying in gold on dips around 47,050 with a stop loss of 46,800 for the target of 47,500 and in silver around 63,000 with a stop loss of 62,400 for the target of 64,400.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades marginally lower near $1788/oz after a 0.7% gain yesterday. Gold is pressurized by some hawkish Fed comments, persistent strength in US equities, and continuing ETF outflows.
However, supporting gold prices is the disappointing US and Chinese economic data, rising virus cases and increasing tensions relating to Afghanistan.Gold may remain supported by increasing economic challenges and geopolitical risks however we need to see a break above $1800/oz for a sustained rise.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot and futures gold prices recovered on Monday buoyed by a pullback in U.S. Treasury yields and some safe-haven buying spurred by COVID-19-related concerns.
Domestic gold and silver ended higher on Monday, tracking overseas prices. Bullion Index ended higher on Monday, tracking firm domestic gold and silver prices.
On the domestic front, MCX Gold October could see a bullish momentum up to 47250-47400 levels support is at 47050-46900 levels.
MCX Silver September above 63000 levels could see 63800-64400 levels. Support is at 62900-62000 levels. MCXBULLDEX May could trade on a Bullish note within the range of 13950-14350 levels.
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