India Gold MCX August Futures trade higher on July 29 following positive trend in international spot prices after the US Federal Reserve failed to give a timeline for its tapering plans.
“The US central bank acknowledged discussing the eventual withdrawal of pandemic-era monetary policy support in its statement, Chairman Jerome Powell said the US job market still had “some ground to cover” before it would be time to pull back,” said a Reuters report.
Large stimulus measures tend to support gold, which is often considered a hedge against inflation and currency debasement, it said.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.39 percent higher at Rs 47,764 for 10 grams at 0930 hours. September silver futures were trading 1.2 percent higher at Rs 67,192 a kilogram.
Gold & Silver Rates Aug 11, 2022
Gold and silver traded steadily in the international markets on July 28. Both the precious metals settled on a mixed note in the international markets.
Gold August futures contracts settled at $1,799.70 per troy ounce while Silver September futures contracts settled at $24.88 per troy ounce. Both the precious metals were settled on a positive note in the domestic markets.
The U.S. Federal Reserve left its key interest rates unchanged in its monetary policy meeting and also continues its bond-buying program of $80 billion per month.
“The U.S. Federal Reserve will continue to its bond-buying program until economic comes on track post-pandemic. The dollar index slipped after the U.S. Federal Reserve meeting outcome and supported both the precious metals in the international markets,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“Gold prices are hovering near $1800 per troy ounce and silver prices also hovering near $25 per troy ounce. We expect both the precious metals could show strength in today’s session after dovish Federal Reserve monetary policy,” he said.
Jain added that at MCX, Gold has support at 47400-47180 and resistance at 47700-47850; silver has support at 65900-65500 and resistance at 66800-67400 levels.
“We suggest buying in gold around 47550 with a stop loss of 47330 for the target of 47850 and in silver around 66400 with a stop loss of 65900 for the target of 67300,” recommend Jain.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities
Traders are advised to create long positions in Gold and Silver. They should also focus on important technical levels for the day given below:
August Gold closing price 47,577, Support 1 - 47450, Support 2 - 47300, Resistance 1 - 47700, Resistance 2 - 47900.
September Silver closing price 66,390, Support 1 - 66000, Support 2 - 65500, Resistance 1 - 66750, Resistance 2 - 67300.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold settled marginally higher on Wednesday after shrugging off initial declines after a U.S. Federal Reserve policy statement as chair Jerome Powell flagged lingering risks to the U.S. economy from the Delta coronavirus variant.
Domestic gold and silver prices ended flat to higher on Wednesday, tracking overseas prices.
Prices had dipped slightly after the Fed statement, which said the U.S. economic recovery remains on track despite a rise in coronavirus infections and flagged ongoing talks around the eventual withdrawal of monetary policy support.
Domestic gold and silver prices could start higher this Thursday morning, tracking overseas prices.
On the domestic front, MCX Gold October supports are at 47546 and 47379. Resistances are at 47875 and 48037.
MCX Silver September resistances are at 66694 and 66998. Supports are at 66073 and 65756.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.