India Gold June Futures are trading flat on Monday following a muted trend seen in the international spot prices as a stronger dollar and elevated US Treasury yields limited bullion's upside.
Spot gold was flat at $1,728.60 per ounce. Gold futures edged up 0.1% to $1,729.50 per ounce. “Shorter-dated US Treasury yields held near 14-month peak, while the dollar was poised to extend gains against major currencies on Monday after the US Labor Department reported stronger-than-forecast jobs growth in March,” Reuters reported.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading lower by 0.14 percent at Rs 45,353 for 10 grams, at 09:20 hours. May silver futures were trading 0.03 percent lower at Rs 65,070 a kilogram.
Gold and Silver prices settled on a positive note in the international markets last week. Gold June futures contract settled at $1,730.45 per troy ounce and Silver May futures contract settled at $25.03 per troy ounce. Domestic markets also settled on a positive note.
Gold and silver saw good follow-through buying on Thursday after witnessing strong gains on Wednesday. Gold and silver prices were supported by the decline in the dollar index and gains in the international oil prices. The dollar index witnessed profit-taking from the higher levels after US President's $2.25 trillion plan, suggest experts.
Precious metals are also getting support from the rising coronavirus cases in most of the European countries and fresh lockdowns were imposed in many countries to contain the virus.
“We expect both the precious metals to remain volatile in Monday’s session and continue to find support at lower levels. Gold has support at $1714-1700, while resistance at $1744-1758 per troy ounce. Silver has support at $24.70-24.40, while resistance is at $25.40-25.88 per troy ounce,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“We suggest buying on dips in the gold around Rs 45100 with a stop loss below Rs 44770 on a closing basis for the target of Rs 45700 and on silver around Rs 64400 with a stop loss below Rs 63600 on a closing basis for the target of Rs 65800,” he said.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices rose on Thursday supported by a retreat in the dollar and U.S. bond yields. Among other precious metals, silver prices ended higher on Thursday.
Domestic gold and silver prices rose on Thursday, tracking firm overseas prices.
Domestic gold and silver prices could trade flat this Monday morning in Asian trade, tracking weak overseas prices.
Technically, MCX Gold June could hold onto supports at Rs 45300-45000 levels and Rs 45700-45950 will hold as resistance.
Technically, if MCX Silver May breaks out above Rs 65900, we could see a bullish momentum up to Rs 67000-68700 levels. Support is at Rs 63900-63000 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.