Gold was trading flat with a negative bias in the Indian market on July 22 following a muted trend in international spot prices.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.22 percent lower at Rs 47,468 for 10 grams at 0930 hours. September silver futures were trading 0.13 percent lower at Rs 67,050 a kilogram.
Gold and silver were choppy on July 21 amid volatility in the US dollar index. Both the precious metals settled on a mixed note in the international market.
August gold futures contract settled at $1,803.40 a troy ounce and September silver futures at $25.26 a troy ounce.
Rising coronavirus cases in many countries helped safe-haven buying in the dollar and pushed gold lower. The metals were struggling amid strength in the dollar index, experts said.
“We expect both the precious metals to remain volatile in Thursday’s session ahead of the US unemployment claims and new home sales data. Gold has support at $17,94-1,782 per troy ounce and resistance at $1,814-1,824 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“At MCX, gold has support at 47,400-47,180 and resistance at 47,770-47,920. Silver has support at 66,800-66,400 and resistance at 67,700-68,100 levels. We suggest buying in silver at around 66,900 with a stop loss of 66,400 for the target of 68,100,” he said.
Technical indicators
Expert: Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities
Comex gold was trading marginally lower near $1,801 after a 0.4 percent decline the previous day. Gold is pressurised by improved risk sentiment and a rise in bond yields from recent lows.
Persisting virus risks, inflation concerns, expectations that ECB may maintain a dovish stance are supporting the price. ETF investors remain on the sidelines, awaiting fresh triggers.
Gold continues to hold near $1,800 and buying interest may emerge at lower levels amid persisting challenges to the global economy.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices fell for the second straight session to their lowest level in more than a week on July 22, as risk appetite resumed with equities and US bond yields rebounding to curb safe-haven bullion bids.
International silver moved higher, supported by a reflation trade with higher economic growth and rising inflation was positive for silver, which has industrial applications.
Domestic gold could start weaker, while silver could start higher on July 22, tracking overseas prices.
Technically, MCX Gold August took support of 47,500 levels where it closed above it indicating a sideways momentum within the range of 47,700-47,400 levels in the coming session.
MCX September silver below 68,000 could see 66,800-66,000 levels. Resistance is at 67,700-68,400.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Traders are advised to create long positions in gold and silver near support levels. They should also focus on important technical levels given below for the day:
August gold closing price: 47,573, Support 1 - 47400, Support 2 - 47200, Resistance 1 - 47720, Resistance 2 - 47920.
September Silver closing price: Rs 67,137, Support 1 - 66700, Support 2 - 66000, Resistance 1 - 67500, Resistance 2 - 68000.
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.
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