India Gold MCX June Futures trade higher on Monday tracking positive trend seen in the international spot prices which were trading above $1,900/oz after U.S. consumer prices rose more than expected in April.
U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target and posting its largest annual gain since 1992, said a Reuters report. Gold is considered an inflation hedge.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.33 percent at Rs 48,700 for 10 grams at 09:30 hours. July silver futures were trading 0.59 percent higher at Rs 72,032 a kilogram.
On Friday, gold and silver prices settled on a positive note in the international markets. Gold June futures contract settled at $1,903.60 per troy ounce, and silver July futures contract settled at $28.06 per troy ounce.
Due to the strength in the rupee, domestic markets settled on a slightly weaker note. Gold August futures contract settled at Rs 49,150 per 10 grams, and silver July futures contract settled at Rs71,611 per kilogram.
Gold prices crossed an important milestone of $1900 per troy ounce last week and gained around 8 percent so far in the month of May -- the best month since July 2020.
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“We expect both the precious metals to remain volatile this week and any dips in the prices would be a buying opportunity. Gold has support at $1892-1884, while resistance at $1914-1933 per troy ounce. Silver has support at $27.74-27.40, while resistance is at $28.40-28.70 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research said.
“At MCX, Gold has a support at 49000-48770 and resistance at 49400-49660; silver is having support at 71100-70500 and resistance at 72200-73000 levels,” he said.
Jain suggests buying in gold August futures contract around 49,000 with a stop loss of 48,750 for the target of 49,550 and silver around 71,200 with a stop loss of 70,500 for the target of 72,700.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher by 0.35% near $1912/oz after a 0.4% gain on Friday. Gold continues to hold above $1900/oz as Fed and other central banks emphasize on continuing with loose monetary policy.
However, ETF outflows and weaker demand in India amid continuing virus related restrictions might cap the gains.
Gold has continued to hold above $1900/oz however any sustained rise may be challenged by pause in US dollar index fall.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and Silver showed a small downtrend on Friday. On the technical charts, Gold and Silver are both were trading in a strong uptrend. Traders are advised to go long and focus some important technical levels given below for the day:
June Gold closing price 48,542, Support 1 - 48300, Support 2 - 48100, Resistance 1 - 48750, Resistance 2 - 49150.
July Silver closing price 71,611, Support 1 - 70900, Support 2 - 70500, Resistance 1 - 72300, Resistance 2 - 73250.Disclaimer
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