Gold was trading flat in the Indian market on June 3 following a muted trend in international spot prices amid a slight uptick in the dollar. On the Multi-Commodity Exchange (MCX), August gold contracts were trading lower by 0.08 percent at Rs 49,562 for 10 grams at 0930 hours. July silver futures were trading 0.13 percent higher at Rs 72,769 a kilogram.
The dollar index, however, edged higher against its rivals, making gold less appealing for other currency holders, said a Reuters report. The US 10-year treasury yield slipped below 1.60 percent, reducing the opportunity cost of holding non-interest-bearing gold, it said.
Gold and silver traded steady ahead of the US job data to be released on JUne 4. Both precious metals settled on a positive note in the international market. August gold futures contract settled at $1,909.90 a troy ounce, while July silver futures contract settled at $28.20 a troy ounce.
Both precious metals settled on a positive note in the domestic market.
“We expect both precious metals to remain volatile ahead of the US job report and continue to hold their support levels. Gold is having support at $1,896-1,884 per troy ounce and resistance at $1,922-1,933 per troy ounce; silver is having support at $27.88-27.55 per troy ounce and resistance at $28.50-28.80 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research, said.
“At MCX, gold has support at 49,400-49,180 and resistance at 49,770-50,000 levels. Silver has support at 72,200-71,700 and resistance at 73,100-73,600 levels,” he said.
Jain suggests buying in gold on dips around 49,440 with a stop loss of 491,80 for the target of 49,880 and silver around 72m100 with a stop loss of 71,500 for the target of 73,500.
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Sriram Iyer, Senior Research Analyst, Reliance Securities
International spot gold edged higher on June 2 to reclaim its highest settlement since early January, on the back of a slide in yields for US government debt, as investors waited for nonfarm payrolls data due at the end of the week.
International spot silver also ended marginally higher. Domestic gold and silver ended in the green, tracking overseas prices.
Domestic gold and silver prices could start flat to higher on June 3, tracking overseas prices.
On the domestic front, MCX August if gold slips below 49,500, it could see a downside pressure up to Rs 49,300-49,170 levels. Resistance is at 49,600-49,800 levels.
A slip in July silver below Rs 72,700 can take the prices down to 71,800-70,600. Resistance is at 73,000-73,500 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Both gold and silver are trading in an overbought zone, hence, some profit booking is expected this week. Traders are advised to book profit in the long side and can also initiate some short positions near given resistances. Here are important levels to watch --
August gold closing price: 49,601, support 1: 49,380, support 2: 49,100, resistance 1: 49,820and resistance 2: 50,100.
July Silver closing price: 72,678, support 1: 72,000, support 2: 71,200, resistance 1: 73,300, resistance 2: 74,500.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold was trading mixed near $1,908/oz after gaining 0.3 percent the previous day. Gold turned choppy along with the dollar and equity market amid uncertainty about the future monetary policy stance of major central banks.
ETF outflows show weaker investor buying interest, while concerns persist about Indian demand amid higher price and virus-related restrictions.
Gold may remain choppy along with the dollar and equity markets, however, the general bias may be on the upside unless the dollar recovers sharply.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.