India Gold MCX August futures are trading higher on June 1 tracking the positive trend in the international spot prices which were trading near five-month high boosted by a weaker dollar and growing inflationary pressures.
Spot gold was trading around at $1,911.45 per ounce, after hitting its highest since Jan. 8 at $1,914.26 earlier in the session, said a Reuters report. The dollar index was down 0.3% against its rivals, making gold less expensive for other currency holders.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.27 percent at Rs 49,483 for 10 grams at 09:30 hours. July silver futures were trading 0.93 percent higher at Rs 72,565 a kilogram.
Gold August futures contract settled at $1905.30 per troy ounce, and silver July futures contract settled at $28.01 per troy ounce. Both the precious metals settled on a positive note in the domestic markets.
Gold and silver gained smartly in the month of May amid inflation concerns and weakness in the dollar, suggest experts. Gold rose by about 8 percent to post its highest monthly gain in the last 10 months while silver posted its biggest monthly gain since December 2020.
“We expect both the precious metals to remain steady and weakness in the dollar continue to support prices. Gold has support at $1896-1884 per troy ounce and resistance at $1914-1933 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research said.
“At MCX, Gold has a support at 49180-48950 and resistance at 49580-49800 levels, and Silver has support at 71400-70900 and resistance at 72400-73000 levels,” he said.
Jain suggests buying in gold around 49200 with a stop loss of 48950 for the target of 49600 and in silver around 71500 with a stop loss of 70800 for the target of 72800.
Technical indicators
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 a pause in the US dollar index fall.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold and silver extended gains on Monday in a holiday-thinned trade.
The U.S. Dollar ended lower in the Asian session and lent support on Monday. Domestic gold and silver ended higher on Monday, tracking overseas markets.
International spot gold and silver prices have started flat to higher this Tuesday morning in Asian trade as U.S Dollar extended losses this Tuesday.
Technically, MCX Gold August above 49300 could see an upside move up to 49550-49700 levels. Support is at 49160-48900 levels.
Technically, MCX Silver July above 72000 could take prices up to 72500-73200 levels. Support is at 71200-70600 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and Silver both are in a super bullish trend, and all the fundamentals and technicals indicators are in their favour. Traders are definitely going long. Here are some important technical levels to watch out for -
August Gold closing price 49,349: Support 1 - 49200, Support 2 - 49000, Resistance 1 - 49500, Resistance 2 - 49700.
July Silver closing price 71,898: Support 1 - 71500, Support 2 - 70500, Resistance 1 - 72150, Resistance 2 - 73000.
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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