India Gold MCX June futures rose on Monday tracking positive trend seen in the
international spot prices supported by a soft dollar ahead of the U.S. Federal Reserve policy meeting this week.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.11 percent at Rs 47,584 for 10 grams at 0935 hours. May silver futures were trading 0.02 percent higher at Rs 68,730 a kilogram.
On Friday, gold and silver prices settled on a weaker note in the international markets. Gold June futures contract settled at $1,776.75 per troy ounce, down by 0.29 percent and silver May futures contract was settled at $26.04 per troy ounce, down by 0.54 percent.
Due to strength in the rupee domestic markets were also settled on a weaker note. Gold June futures contract settled at Rs47,532 per 10 grams, and Silver May futures contract settled at Rs68,674 per kilogram.
Gold and silver prices dipped on Friday on strong U.S. economic data. U.S. flash manufacturing PMI reading comes at 60.7 against expectations of 59.0 and services PMI also reported at 60.1 against expectations of 58.9.
“Overall fundamentals are still supportive for precious metals as the dollar index is trading near two months low and coronavirus cases are rapidly increasing in India and Japan. We expect both the precious metals remain volatile this week amid volatility in the dollar index and the rupee; rising coronavirus cases in Asian continent could support prices of both the precious metals,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.
“At MCX, Gold has support at 47330-47150 and resistance at 47770-48000; silver has support at 68200-67700 and resistance at 69100-69500. We suggest buying in gold on dips around 47400 with a stop loss of 47150 for the target of 47850,” he said.
Technical indicators
Ravindra Rao, CMT, VP-Head, Commodity Research, Kotak Securities
COMEX gold trades little changed near $1778/oz after a 0.2% decline on Friday. Gold is struggling to break past the key $1800/oz level.
Support from weaker US dollar, rising virus cases and loose monetary policy stance of major central banks is countered by some upbeat economic readings, general progress on vaccination and weaker investor interest.
Gold may remain choppy ahead of the Fed decision however general bias is still positive amid persistent weakness in the US dollar.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices closed lower on Friday pressured by firm Treasury yields in reaction to solid U.S. economic data.
Domestic gold and silver ended lower on Friday, tracking the overseas prices.
Data showed U.S. factory activity powered ahead in early April, giving a lift to Wall Street, while a rebound in new home sales exceeded expectations in March. The U.S. Dollar Index fell, but this didn’t help gold prices.
Domestic gold and silver prices could start marginally higher this Monday morning tracking overseas prices.
Technically, MCX Gold June supports are at 47500 and 47200. Resistances are at 47800 and 48200.
Technically, MCX Silver May resistances are at 69500 and 70300. Supports are at 68000 and 67500.
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