Gold was trading trading flat-to-higher on July 19 following positive trend in international spot prices that rose on concerns around a surge in coronavirus cases.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.11 percent higher at Rs 48,105 for 10 grams at 0930 hours. September silver futures were trading 0.42 percent lower at Rs 68,035 a kilogram.
A surge in COVID cases could dampen global economic recovery, though an uptick in the dollar limited gains for the safe-haven metal, said a Reuters report.
On July 16, gold and silver prices settled weaker in the international market. August gold futures contract settled at $1,812.60 a troy ounce and September silver at $25.71 a troy ounce.
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Gold and silver plunged amid better-than-expected US retail and core retail sales data for June. The dollar index gained after the upbeat data and sent both the precious metals lower, experts said.
“We expect both the precious metals to remain volatile in today’s session and weakness in the global equities and new outbreaks of coronavirus could support prices at lower levels. Gold has support at $1,800-1,788, while resistance is at $1,822-1,834 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“At MCX, gold has support at 47,920-47,770 and resistance at 48,220-4,8440. Silver has support at 68,000-67,500 and resistance at 68,800-69,400 levels. We suggest buying in gold around 48,000…for the target of 48,440,” he added.
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
Comex gold trading unchanged near $18,14/oz after declining 0.8 percent in the previous session. Gold is choppy as support from safe-haven buying amid rising virus cases, uneven recovery and rising inflation concerns is countered by the firmness in the dollar, weaker investor interest and sluggish consumer demand.
Gold may remain choppy but volatility in financial markets may keep prices supported.
Sriram Iyer, Senior Research Analyst, Reliance Securities
International spot gold and silver crashed on July 16 as the dollar moved higher supported by upbeat retail sales data.
US retail sales unexpectedly increased in June as demand for goods remained strong even as spending shifted back to services, bolstering expectations that economic growth accelerated in the second quarter.
Domestic gold and silver prices also ended with losses on July 16, tracking overseas markets.
Domestic gold and silver prices could start flat to marginally higher on July 19, tracking overseas prices.
On the domestic front, MCX August gold below 200-DMA, placed at 48,200, could see 47,900-47,600 levels. Resistance is at 48,200-48,350 levels.
September silver is trading below 100-DMA that is placed at 68,750 above which it could see 67,800-67,000. Resistance is at 68,700-69,400.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Traders are advised to create short positions in gold and silver. Traders should also focus on important technical levels given below for the day:
August gold closing price: Rs 48,053; support 1: 47,800; support 2: 47,600; resistance 1: 48,300 and resistance 2: 48,510.
September silver closing price: Rs 68,319; support 1: 67,300, support 2: 66,300; resistance 1: 69,400 and resistance 2: 70,000.
Sandeep Matta, Founder, TRADEIT Investment Advisor
Gold’s fair value seems to determine around 18,00 level as the yellow metal is struggling to breach $1,835 in the absence of new fundamental news, rising dollar, and the looming threat of the delta variant.
A strong rally in global equity markets has also dampened the safe-haven status of gold. The dollar is going to be a key driver of gold prices for the next few days and any further increase in the dollar will have a negative impact.
In line with our view, gold on MCX has also witnessed a sharp fall on July 16 and closed around 48,000 levels. Our outlook for gold is neutral until it crosses and sustains above 48,500.
Long-term investors are again advised to wait for some more correction for making a fresh entry, while day traders need to be proactive in capturing small profit on both the sides.
Key level for GOLD AUG contract: Rs 48,139
Buy zone above: 48,150 for the target of 48,250-48,408
Sell zone below: 48,150 for the target of 47,925-47,837