Gold was trading higher in the Indian market on July 14 following a positive trend in international spot prices. On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.19 percent higher at Rs 47,980 for 10 grams at 0930 hours. September silver futures were trading 0.01 percent higher at Rs 69,086 a kilogram.
Gold and silver prices slipped from their highs on July 13 after an unexpected rise in CPI and core CPI in the United States.
Both precious metals settled on a mixed note in the international as well as domestic markets. August gold futures contract settled at Rs 47,889 per 10 gram, and September silver futures contract settled at Rs 69,081 a kilogram.
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The dollar index and benchmark 10-year bond yield rose after an unexpected rise in consumer inflation in the United States, suggest experts.
“Record rise in the inflation supported the dollar and capped gains of precious metals. However, higher inflation could support gold prices in the long term as a hedge against inflation,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
Gold and silver prices will remain volatile on July 14 ahead of the US Fed Chairman Jerome Powell’s Congress testimony.
At MCX, gold has support at Rs 47,700-47,550 and resistance at Rs 48,055-4,8220, Jain said. Silver has support at Rs 68,700-68,200 and resistance at Rs 69,500-70,100, he said.
Jain suggests buying in gold on dips around 47,700 with a stop loss of 47,480 for a target of 48,100.
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Comex gold was trading unchanged near $1,812 after gaining 0.2 percent the previous day. Gold is choppy as Fed’s monetary tightening expectations are countered by increased safe-haven appeal for the metal.
Support from rising virus cases and choppy equities were countered by weaker ETF interest and slack consumer buying. Gold may remain near $1,800 amid mixed factors, however, firmness in the dollar may continue to weigh.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold gave up most of its gains and ended flat on July 13 as the dollar surged higher after heated inflation spurred bets of faster monetary policy tightening than Federal Reserve officials have so far signalled.
International spot silver gave up gains and ended lower, tracking the strength of the dollar. Domestic gold ended marginally higher, while silver futures ended weaker.
Domestic gold and silver futures could start flat to weaker on July 14, tracking subdued overseas prices.
Technically, MCX August gold holds strong support near 47,800-47,600 levels. Resistance is at 47,900-48,100.
If MCX September silver trades above 69,000, we could witness a continuation of the bullish momentum up to 69,900-70,900. Support is at 68,900-68,000 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities
Gold and silver showed some profit booking on the daily technical chart. The momentum indicator RSI is also indicating the same on the daily chart.
Traders are advised to create a short position in bullions near given resistance levels, and should also focus on important technical levels given below for the day:
August gold closing price: Rs 47,889; support 1: Rs 47,650; support 2: Rs 47500; resistance 1: Rs 48100 and resistance 2: Rs 48,300.
September silver closing price: Rs 69,081; support 1: Rs 68,600; support 2: Rs 68,000; resistance 1: Rs 69,500 and resistance 2: Rs 70,100
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