Gold bounced back to trade higher in Indian markets on July 1 after showing extreme volatility in the previous session. International spot prices were also high, supporting the sentiment.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.26 percent higher at Rs 46,963 for 10 grams at 0930 hours. September silver contracts were up 0.58 percent at Rs 69,477 a kilogram.
Gold and silver showed extreme volatility on June 30 to recover from their lows. Both metals settled on a positive note in the international market as well as the domestic market.
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“Gold and silver prices showed extreme volatility on Wednesday and prices recovered from their 2.5-month lows due to short covering and perceived bargain buying at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“The global stock markets were weak to lower due to strength in the dollar index and crude oil prices gained again and also supported prices of precious metals. We expect gold and silver prices to remain volatile in today’s session due to volatility in the dollar index and US unemployment claims data,” he said.
At MCX, gold has support at 46,660-46,500 and resistance at 47,055-47,200. Silver has support at 68,500-68,100 and resistance at 69,500-69,900, he said.
“We expect gold to trade in the range of 46,500-47,200 and silver is also expected to be traded in the range of 68,200-69,900 levels,” Jain said.
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
Comex gold traded marginally higher near $1,773 after gaining 0.5 percent the previous day. Gold has recovered from recent lows amid dip-buying, renewed virus concerns and mixed economic data from major economies.
However, weighing on price is firmness in the dollar and persisting concerns about Fed’s monetary tightening and strength in equity markets.
Gold has bounced back after taking support near $1,750 level but may remain under pressure as Fed's monetary tightening expectations may support the dollar.
Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities
International gold and silver rebounded on June 30 to end higher for the session and the quarter but finished the month and first half of 2021 with losses.
Domestic gold and silver also ended higher on, tracking overseas prices. The gains came even as the dollar edged higher and as US stock indexes touched record highs.
Domestic gold and silver prices could start flat on July 1, tracking overseas prices.
On the domestic front, MCX August gold resistance is at 46,900 and 47,200. Supports is at 46,700 and 46,500.
If MCX July silver trades above important support of 67,500 levels, we could witness a push up to 68,700-69,500 levels.
Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
The technical chart for gold and silver indicates that both are trading in the oversold zones. The momentum indicator RSI is giving a strong positive divergence in the four-hour chart.
Traders are advised to create a long positions in gold - silver near support levels, and should focus on important technical levels given below for the day:
August gold closing price: 46,839, support 1: 46,550, support 2: 46,300; resistance 1: 47,100 and resistance 2: 47,450.
September silver closing price: 69,074; support 1: 68,500; support 2: 68,000; resistance 1: 69,600 and resistance 2: 70,100.
Expert: Abhishek Chauhan Head Commodities & Currencies, Swastika Investmart
Prices of gold and silver are looking weak but in oversold territory. We are expecting a minor pullback, which can be used as a selling opportunity.
The strong dollar index and US economic data may keep the upside limited for the precious metal. Gold has resistance at 47,000 and support at 46,200. Silver has support at 68,200 and resistance at 69,200.
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