Gold was flat with a negative bias in the Indian market on May 18 morning despite a positive trend in international spot prices but silver was trading in positive territory.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading lower by 0.15 percent at Rs 48,400 for 10 grams at 0935 hours. July silver futures were trading 0.86 percent higher at Rs 73,953 a kilogram.
Technical experts are of the view that any dip in gold is a buying opportunity. Investors can look at buying gold on any dip towards Rs 48,300 for a target of Rs 48,800 in the next few sessions.
Gold and silver extended gains on May 17 and the yellow metal reached a four-month high. Silver, too, hit a three-month high in the international market.
Both metals settled on a positive note in the international market. June gold futures contract settled at $1,867.60 a troy ounce and July silver futures contract ended at $28.27 a troy ounce.
Both precious metals settled on a positive note in the domestic markets as well.
“We expect both precious metals to remain volatile in today’s session and any decline in the prices would be a buying opportunity again. Weakness in the dollar, strength in the crude oil prices, and selling pressure in cryptocurrencies continue to support precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research said.
“Gold has support at $1,855-1,840 per troy ounce and resistance at $1,884-1,896 per troy ounce. At MCX, gold has support at 48,180-48,055 and resistance at 48,660-48,800 levels; silver is having support at 72,700-72,200 and resistance at 73,900-74,500 levels,” he said.
Jain suggests buying in gold at around Rs 48,300 with a stop loss of Rs 48,050 for the target of Rs 48,800 and in silver around Rs 72,700 with a stop loss of Rs 72,100 for the target of Rs 74,200.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices surged higher on May 17 on the back of a weaker dollar, steady yields and losses among many global benchmark indexes.
Domestic gold and silver surged higher, tracking overseas prices.
Meanwhile, Federal Reserve Vice Chairman Richard Clarida again reiterated that the US economy hasn’t progressed enough for the central bank to begin scaling back asset purchases.
Domestic gold and silver prices could start with gains on May 18, tracking overseas prices.
Technically, MCX June gold resistances are at 48,650 and 48,800. Supports are at 48,300 and 48,050.
Technically, MCX July silver resistances are at 74,200 and 75,000. Supports are at 72,800 and 71,700.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Investors should keep a close eye on gold's relationship with the US macroeconomic data that have been disappointing recently, especially when the latest employment and retail numbers.
Gold tends to outperform when economic data is weakening and underperforms when economic prospects improve. Economic data expectations are often adaptive, falling sharply following a negative shock such as COVID shutdowns and the accompanying weak data.
We saw a very good bounce in both precious metals on May 17, which may continue on May 18. Traders are advised to go long in billions and also focus on important technical levels given below:
June gold closing price 48,474, Support 1 – 48,100, Support 2 – 47,800, Resistance 1 – 48,550, Resistance 2 – 48,950.
July silver closing price 73,324, Support 1 – 72,600, Support 2 – 72,200, Resistance 1 – 74,500, Resistance 2 – 77,000.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.