Gold prices were little changed in the domestic futures market in early trade on June 25, mirroring trends of the global markets.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading with a nominal gain of 0.02 percent at Rs 46,880 for 10 grams at 0950 hours. July silver futures were trading 0.19 percent higher at Rs 67,865 a kilogram.
In the previous session, gold and silver prices failed to sustain at higher levels due to risk aversion in global markets.
Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, expects both the precious metals to remain volatile and they could face steep resistance at higher levels.
"Gold is having support at $1,764-1,750 per troy ounce and resistance at $1,788-1,800 per troy ounce; silver is having support at $25.80-25.55 per troy ounce and resistance at $26.40-26.70 per troy ounce," he said.
"At MCX, gold is having support at Rs 46,660-46,500 and resistance at Rs 47,055-47,280; silver is having support at Rs 67,200-66,800 and resistance at Rs 68,200-68,500 levels. We suggest selling in gold on the rise around Rs 47,055 with a stop loss of Rs 47,300 for the target of Rs 46,550," Jain said.
Technical indicators
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
LBMA Gold Spot is intact in a narrow range where it's holding support near $1,771-$1,762 levels. Resistance is at $1,779-$1,785 levels.
LBMA Silver is trading above the $26 level where further could see $26.30-$27.50 levels. Support is at $25.50-$24.90 levels.
On the domestic front, MCX Gold August is holding support near the 100-day moving average which is placed at Rs 46,900 levels above which could see an upside move towards Rs 47,200-47,350 levels. Support is at Rs 46,800-46,600 levels.
MCX Silver July holds a support near Rs 67,000-65,900 levels. Resistance is at Rs 68,200-68,200 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and Silver both are trading at oversold zone. Momentum indicator RSI is also creating positive divergence on 4 hourly charts, so traders are advised to create a long position in gold and silver near support levels and traders should also focus on important technical levels given below for the day.
August Gold support 1 - Rs 46,650, support 2 - Rs 46,500 | Resistance 1 - Rs 47,100, resistance 2 - Rs 47,350.
July Silver support 1 - Rs 67,200, support 2 - Rs 66,600 | Resistance 1 - Rs 68,200, resistance 2 - Rs 68,850.
Sugandha Sachdeva, Vice President - Commodity and Currency Research, Religare Broking
As the market reassesses Fed's hawkishness, the trend in gold doesn't look very promising in the near term, still, the level of $1,758 per ounce will provide a strong cushion to prices, while in the domestic markets as long as the level of Rs 46,500/10gms holds on a closing basis, it looks to entice buying interest.
As of now gold looks primed for a rebound which can extend towards Rs 47,500/10gms and then eventually Rs 48,100/10gms in the coming days.
On the flip side, any convincing breach of the Rs 46,500/10gm support would lead to a further downdraft towards the Rs 45,700-45,300/10gms area.
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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