India Gold MCX April futures trade flat-to-higher on Wednesday following positive trend seen in the international trend in the international spot prices. Both Gold & Silver prices dipped on Tuesday amid rising 10-year U.S. bond yields.
On the Multi-Commodity Exchange (MCX), April gold contracts were trading higher by 0.05 percent at Rs 46,824 for 10 grams at 0920 hours. March silver futures were trading 0.31 percent higher at Rs 69,555 a kilogram.
Gold April futures contract settled at $1805.90 per troy ounce while Silver March futures contract settled at $27.69 per troy ounce. On the domestic front, both the precious metals settled on a weaker note.
Gold and silver prices slipped on Tuesday amid a further rise in 10-year U.S. bond yields. There is a significant rise in the 10-year U.S. bond yield from its August 2020 lows of 0.50% and it reached 1.36%.
“Rising U.S. debts are supporting bond yields and it could show further strength in coming months and could pressure on the precious metal prices. But, precious metals are getting support from the rising inflation and the stimulus supports of global central banks. Tuesday, Federal Reserve Chair Jerome Powell avoided commenting on the rise in bond yields,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“We expect gold prices could hold $1800 per troy ounce and it could show some strength in today’s session. Silver prices could also get support at lower levels. At MCX, Gold has support at 46550-46400 and resistance at 47050-47220,” he said.
Jain further added that Silver has support at 68800-68300 and resistance is placed at 69900-70600 levels. We suggest buying in gold around 46700 with the stop loss of 46480 on a closing basis for the target of 47100.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices ended lower in choppy trading sessions as the U.S Dollar rebounded on Tuesday after the comments from U.S. Federal Reserve Chairman Jerome Powell.
He added that it will be some time before the Fed considers changing policies it adopted to help the economy get back to full employment and he does not expect inflation to rise to troubling levels.
Domestic gold and silver prices fell on Tuesday, tracking overseas prices.
Domestic gold and silver could trade marginally higher this Wednesday morning, tracking the overseas markets.
Technically, MCX Gold April is trading above 46500 and further can continue its bullish momentum up to 46950-47100 levels. Support is at 46650-46400 levels.
MCX Silver March is trading below 70000 levels and can see sideways to bearish momentum. Resistance is at 70050-70900 levels. Support is at 69000-67900 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades marginally higher near $1810/oz after a 0.1% decline yesterday. Supporting gold price is Fed’s support for loose monetary policy stance and retreat in US bond yields from a recent high.
However, weighing on price is continuing ETF outflows, some better than expected US economic data, and improving virus situation. Gold is holding above $1800/oz and Fed's loose monetary policy stance may support price however a sharp rise is unlikely until US bond yields correct sharply.
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