Gold was flat in the Indian market on May 27 following a muted trend in international spot prices, which were below their four-and-a-half-month high hurt by an uptick in the US dollar and bond yields.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.02 percent at Rs 48,795 for 10 grams at 0930 hours. July silver futures were trading 0.02 percent lower at Rs 71,396 a kilogram.
Spot gold was down 0.1 percent at $1,894.88 an ounce after hitting its highest since January 8 at $1,912.50 on May 26, a Reuters report said. The dollar index rose to a one-week high against rivals, making gold more expensive for other currency holders.
Gold and silver had a roller coaster ride on May 26, as both precious metals gained in the early session but a rebound in the dollar index erased the gains late evening.
Both settled on a mixed note in international markets. June gold futures contract settled at $1,901.20 per and July silver at $27.88 a troy ounce.
Due to the strength in the rupee, both metals settled on a weaker note in the domestic markets. The dollar index rallied for the first time this week as the US Federal Reserve officials continued to downplay the prospects of rising inflation, experts said.
“We expect gold and silver prices to find support at lower levels again amid global inflation concerns, today’s US durable goods orders and core durable goods orders data give further directions to the prices,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research, said.
“Gold has support at $1,892-1,878 per troy ounce and resistance at $1,914-1,922 per troy ounce. At MCX, gold has support at 48,600-48,380 and resistance at 4,9050-49,220; silver is having support at 70,700-70,200 and resistance at 72,200-72,800 levels,” he said.
Jain suggests buying in gold on dips at around Rs 48,500 with a stop loss of Rs 48,250 for the target of 49,050 and in silver around Rs 70,800 with a stop loss of Rs 70,100 for the target of Rs 72,200.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
On May 26, international spot gold fell as the dollar ended higher. Spot silver prices also ended in the red.
Domestic gold and silver ended the session with modest losses, tracking overseas prices. The 10-year treasury note gained for the first time in five sessions and weighed on prices.
Technically, MCX Gold June could trade on sideways momentum within 48,500-48,900 range.
Technically, if MCX July silver sustains above 71,000, it could push up to 71,900-72,700. Support is at 70,700-69,900.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
Comex gold was trading 0.4 percent lower near $1,893 after gaining 0.2 percent the previous day. Gold has corrected from January highs amid some recovery in the dollar and profit-taking by ETF investors.
However, supporting price is the choppiness in equity markets, loose monetary policy stance of major central banks and China’s efforts to limit raw material prices.
Gold has rallied sharply in the last few days and is now seeing some profit-taking, which may extend if the US dollar recovers further or if equity markets stabilise.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
The overall trend is positive for gold and silver. On May 27, traders should go long and focus on these technical levels:
June gold closing price: 48,784, Support 1: 48,400, Support 2: 48,100, Resistance 1: 49,100, Resistance 2: 49,400.
July silver closing price: 71,411, Support 1: 70,500, Support 2: 70,000, Resistance 1: 72,300, Resistance 2: 73,100.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.