Gold was trading higher on May 24, tracking a positive trend in international spot prices as weaker dollar and pullback in US Treasury yields supported the safe-haven metal.
On the Multi-Commodity Exchange, June gold contracts were trading higher by 0.41 percent at Rs 48,603 for 10 grams at 1135 hours. July silver futures were trading 0.84 percent higher at Rs 71,645 a kilogram.
The dollar was at its lowest levels in three months against the resurgent euro and other European currencies, making gold cheaper for other currency holders, said a Reuters report.
On May 21, gold and silver prices settled on a weaker note in the international markets. Gold June futures contract settled at $1,881.85 per troy ounce and Silver July futures contract settled at $27.65 per troy ounce. Domestic markets also settled on a weaker note.
Gold and silver showed profit-taking on May 21 amid a rebound in the dollar index from five-month lows and upbeat US flash manufacturing data.
“The dollar index slipped below 90 levels in the early trading session on Friday but better than expected manufacturing data supported dollar index at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research, said.
“Precious metals also fell amid a ceasefire between Israel and Palestine. We expect both the precious metals remain volatile this week and gold is expected to hold its key support of $1,850 per troy ounce. Gold has support at $1872-1858, while resistance at $1892-1902 per troy ounce,” he said.
Jain added that at MCX, gold has support at 48,200-47,980 and resistance at 48,650-48,800. “We suggest buying in gold around 48,200 with a stop loss of 47,980 for the target of 48,650,” he added.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold ended flat to marginally higher, while silver prices ended modestly lower on May 21, as investors booked some profit-taking heading into the weekend.
Domestic gold and silver ended the session with modest losses, tracking weak overseas prices. The dollar witnessed a rebound and weighed on prices.
Domestic gold and silver prices could trade flat-to-marginally higher on May 24, tracking overseas prices.
Technically, MCX gold June could see a bullish momentum up to 48500-48700 levels. Support is at 48340-48150 levels.
Technically, if MCX Silver July sustains above 71,000 levels can take prices up to 72,100-73,000 levels. Support is at 70,500-69,900 levels.
Ravindra Rao, CMT, EPATVP-Head Commodity Research, Kotak Securities Ltd
Gold remains supported by persisting inflation concerns, diverging virus situation, mixed economic data from major economies and pick up in investor buying.
However, weighing on price is a recovery in the US dollar from the low of May 21, concerns about Indian demand and easing geopolitical tensions in the Middle East.
Gold may remain volatile as market players assess central bank stance, however, continued recovery in equity markets may reduce its safe-haven appeal pressurizing prices.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
We saw some correction in both precious metals on May 21 but on May 24 we can see some recovery from the bottom. Traders are advised to go long in dips and also focus on important technical levels given below:
June gold closing price 48,404, Support 1: 48,100, Support 2: 47,900, Resistance 1: 48,650, Resistance 2: 49,100.
July silver closing price 71,049, Support 1: 69,950, Support 2: 68,800, Resistance 1: 72,200, Resistance 2: 73,200.Disclaimer
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