Gold was trading higher in the Indian market on May 7 following a positive trend in international spot prices aided by a pullback in the dollar and treasury yields that supported the precious metal.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.26 percent at Rs 47,721 for 10 grams at 0935 hours. July silver futures were trading 0.31 percent higher at Rs 71,900 a kilogram.
The dollar index slipped to a one-week low against its rival, making gold less expensive for other currency holders, a Reuters report said.
Gold and silver rallied on May 6 and both metals breached their key resistance levels of $1,800 a troy ounce and $27 a troy ounce on a daily closing basis.
The metals were settled on a positive note in the international markets, despite strength in the rupee.
“We expect both precious metals to remain volatile but weakness in the dollar index could support prices of both precious metals. Now the next big hurdle for gold is its 200-DMA resistance at around $1,868 per troy ounce,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.
“At MCX, gold has support at 47,330-47,100 and resistance at 47,800-48,050. Silver is having support at 71,100-70,700 and resistance at 72,400-72,900 levels,” he said.
Jain suggests buying in gold at around Rs 47,300 with a stop loss of Rs 46,980 for the target of Rs 47,850 and in silver around Rs 71,100 with a stop loss of Rs 70,500 for the target of Rs 72,600.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices surged higher, with gold breaking out of the range on May 6 as the dollar headed south.
Domestic gold and silver surged higher, tracking overseas prices. US treasury yields moved lower despite a decline in jobless claims and also lent support.
Domestic gold and silver prices could trade flat and in small trading band over the next couple of trading sessions.
Technically, MCX June gold has given a breakout above Rs 47,500 where it could see a bullish momentum up to Rs 47,650-47,770 level. Support is at Rs 47,450-47,300 levels.
Technically, MCX July silver breakout above Rs 71,000 and could test Rs 71,900-73,000 levels. Support is at Rs 70,100-69,300 levels.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold was trading mixed near $1,815 after gaining 1.8 percent on the previous day. Supporting gold is weaker US dollar, loose monetary policy stance of major central banks and Fed's warning about stretched valuation in many asset classes.
However, weighing on price is the lack of ETF buying and concerns about consumer demand in India. Gold may remain volatile along with gold as market players assess Fed's monetary policy but the general bias remains positive. Focus for the day would be US non-farm payrolls data that might keep gold volatile.Disclaimer
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