Gold was trading higher in Indian markets on July 26 following positive trend seen in international spot prices. On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.18 percent higher at Rs 47,620 for 10 grams at 0930 hours. September silver futures were trading 0.26 percent higher at Rs 67,200 a kilogram.
Investors will keep their eye on the US Federal Open Market Committee’s meeting during this week. While no policy change is expected from the committee’s meeting on July 27-28, investors will look out for clues on when the US central bank may rein in its easy monetary policies, a Reuters report said.
On July 23, gold and silver prices settled on a weaker note in the international markets. August gold futures contract settled at $1,801.90 a troy ounce and September silver futures contract settled at $25.24 a troy ounce.
Gold and silver prices slipped in the week gone by amid strength in the dollar index and strength in the global equities. Upbeat US corporate earning supported the dollar and global equities. The dollar index tested a fresh three and a half month high last week, experts said.
“We expect both the precious metals to remain volatile this week ahead of the US Federal Reserve monetary policy meeting and the US Fed stance on interest rates and inflation. Gold is expected to hold $1,800 on a closing basis this week. Gold has support at $1,792-1,778, while resistance is at $1,814-1,828 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“At MCX, gold has support at 47,300-47,180 and resistance at 47,700-47,880; silver has support at 66,600-66,200 and resistance at 67,500-68,100,” he said.
Jain suggests buying in gold around Rs 47,330 with a stop loss of 47,100 for the target of 47,750 and in silver, around Rs 66,600 with a stop loss of 66,100 for the target of 67,500.
Technical indicators
Expert: Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities
Comex gold was trading marginally higher near $1,807 after a 0.2 percent decline in the previous session. Gold inched up amid choppiness in the dollar, increasing virus concerns, US-China tensions and Beijing’s crackdown on technology firms.
ETF outflows, weaker consumer demand, and uncertainty ahead of the Fed meeting weighed on prices. Gold may remain supported near $1,800 until the dollar is steady.
Sriram Iyer, Senior Research Analyst, Reliance Securities
International spot gold fell on July 23 and ended the week lower as a stronger dollar, firmer yields, and equity markets weighed on the appeal of the yellow metal.
International spot silver prices fell 1.2 percent on July 23 and closed weak for the third consecutive week.
Domestic gold and silver prices, too, ended weaker, tracking weak overseas prices.
Domestic gold and silver could start flat to marginally higher on July 26, tracking overseas prices.
On the domestic front, MCX August gold holds a support near Rs 47,300-47,100. Resistance is at Rs 47,700-47,900.
MCX September silver holds support near Rs 66,600 where it could see resistance near Rs 67,300-68,000. Support is at Rs 66,700-65,900.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Traders are advised to create a long position in gold and silver near support levels. Traders should also focus on important technical levels given below for the day:
August Gold closing price: Rs 47,534; support 1: 47,300, support 2: 47,000, resistance 1 – 47,780 and resistance 2: 48,101.
September silver closing price Rs: 67,024; support 1: 66,500, support 2: 66,000; resistance 1: 67525 and resistance 2: 68,000.
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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