Gold prices were almost flat in the early trade in the Indian market on August 2 amid mixed global trends. On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.06 percent higher at Rs 47,875 for 10 grams at 1015 hours. September silver futures were trading 0.02 percent lower at Rs 67,831 a kilogram.
Gold prices eased in the global markets after the US dollar gained some strength even as concerns over inflation and rising COVID-19 cases kept investors nervous.
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Gold and silver prices corrected in the previous session on July 30 in the international markets amid a rebound in the dollar index from its lows.
Despite the higher US inflation prints, gold and silver showed weakness.
As per Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, a rise in inflation could support both the precious metals—gold and silver—and it could show some strength in the coming sessions.
"Gold has support at $1,800-1,788, while resistance is at $1,822-1,834 per troy ounce. Silver has support at $25.20-24.88, while resistance is at $25.88-26.20 per troy ounce," Jain said.
"At MCX, gold is having support at Rs 47,800-47,660 and resistance at Rs 48,240-48,500 levels. Silver is having support at Rs 67,400-66,900 and resistance at Rs 68,200-68,800 levels," he said.
Jain suggests buying in October gold around Rs 47,800 with a stop loss of Rs 47,580 for the target of Rs 48,400 and in silver around Rs 67,400 with a stop loss of Rs 66,900 for the target of Rs 68,500.
Expert: Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities
Gold is pressured by some recovery in the dollar index from recent lows on the back of upbeat economic data. However, supporting the price is the Fed’s less hawkish stance, increasing concerns about China and rising virus cases.
Gold has come under pressure after failing to break past a recent high near $1,835/oz and while choppy trade is likely, prices may remain supported by increasing economic uncertainty and Fed's less hawkish stance.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities
We witnessed profit-booking in gold and silver in the previous session, which may continue today because daily technical is showing some more profit-booking.
Momentum indicator RSI is also indicating the same on the hourly chart. So, traders are advised to create fresh short positions near below given resistance.
August Gold closing price: Rs 48,001 | Support-1: Rs 47700 | Support-2: Rs 47,400 | Resistance-1: Rs 48,150 | Resistance-2: Rs 48,300.
September Silver closing price: Rs 67,847 | Support-1: Rs 67,500 | Support-2: Rs 67,000 | Resistance-1: Rs 68,200 | Resistance-2: Rs 68,650.
Brokerage firm: Motilal Oswal Financial Services
MCX gold is likely to trade with a positive bias for the session. Support is placed at Rs 47,950-47,700 whereas resistance is at Rs 48,250-48,480 levels.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.