India Gold MCX August Futures contracts trade flat on June 8 following muted trend seen in the international spot price which was hovering below the $1900 an ounce. Investors await US data later this week to gauge the inflationary pressure, said a Reuters report.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading lower by 0.03 percent at Rs 49,130 for 10 grams at 09:30 hours. July silver futures were trading 0.28 percent lower at Rs 71,619 a kilogram.
Gold and silver extend gains on Monday ahead of the US inflation data. Both the precious metals settled on a positive note. Gold August futures contract settled at $1898.80 per troy ounce, and Silver July futures contract settled at $28.02 per troy ounce.
Both the precious metals were also settled on a positive note in the domestic markets.
“Higher inflation concerns are supporting prices of both the precious metals in the international markets. The benchmark 10-year bond yield also traded steady on Monday below 1.57%,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research said.
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“We expect both the precious metals to remain volatile in today’s session and gold could cross $1900 levels again and silver could also test $28.50 per troy ounce levels. Gold has support at $1886-1872 and resistance at $1912-1921 per troy ounce,” he said.
At MCX, Gold has support at 48980-48750 and resistance at 49330-49550. “We suggest buying in gold on dips around 49000 with a stop loss of 48750 for the target of 49550 and in silver around 71300 with a stop loss of 70600 for the target of 72500,” he added.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Gold has benefitted from choppy equities and a weaker US dollar amid continued debate about inflation and monetary policy. However, weighing on price is ETF outflows and weaker consumer demand in India.
Gold may remain choppy reflecting volatility in the equity market and US dollar however the general bias may be on the upside unless the US dollar recovers sharply.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold and silver recovered from the session lows to end the day higher on Monday as the U.S. Dollar gave up gains to end lower.
Domestic gold and silver ended in the green on Monday, tracking overseas prices. The benchmark 10-year Treasury yields also eased on Monday and also lent support.
Domestic gold and silver prices could start flat on Tuesday morning tracking overseas prices.
On the domestic front, MCX Gold August above 49000 could see a bullish move up to 49250-49400 levels. Support is at 48980-48800 levels.
MCX Silver July holds support near 71000-70200 levels. Resistance is at 72100-72800 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and Silver are both in an overall uptrend. But, as per technical charts, we can see some profit booking. Traders are advised to go for short near resistance levels:
August Gold closing price 49,143: Support 1 - 48900, Support 2 - 48600, Resistance 1 - 49400, Resistance 2 - 49800.*
July Silver closing price 71,839: Support 1 - 71200, Support 2 - 70400, Resistance 1 - 72400, Resistance 2 - 73200.Disclaimer
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