Gold was trading higher in the Indian market on June 11, tracking a positive trend in international spot prices, which edged above $1,900 an ounce supported by a pullback in the dollar and lower bond yields.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.12 percent at Rs 49,259 for 10 grams at 0930 hours. July silver futures were trading 0.40 percent higher at Rs 72,284 a kilogram.
Spot gold rose to $1,900.51 per ounce. Prices have risen more than 0.5 percent this week, a Reuters report said. The benchmark US Treasury yields dropped to a three-month low, reducing the opportunity cost of holding non-interest-bearing bullion, it said.
Both precious metals settled on a positive note in the international market. August gold Futures contract settled at $1,896.40 a troy ounce and July silver contract settled at 28.03 a troy ounce.
The precious metals settled on a positive note in the domestic markets as well.
“Gold and silver showed extreme volatility on Thursday. Both precious metals plunged during US trading session after ECB signalled bond tapering but after US CPI data, both precious metals rebounded from their lows and settled on a positive note,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research said.
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“Gold and silver could show further strength in Friday’s session and gold could cross $1,900 per troy ounce levels again. Gold is having support at $1,884-1,872 per troy ounce and resistance at $1912-1921 per troy ounce,” he said.
At MCX, gold has support at Rs 48,950-48,700 and resistance at Rs 49,440-49650. For silver, support is at Rs 71,400-70,900 and resistance at 72,500-73,100.
Jain suggests buying in gold at around Rs 49,050 with a stop loss of Rs 48,800 for the target of Rs 49, 600 and in silver, around Rs 71,500 with a stop loss of Rs 70,900 for the target of Rs 73,100.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
Gold traded higher supported by choppiness in the US dollar and a sharp decline in US bond yield in reaction to the inflation data. ETF inflows also showed buying interest in the metal.
However, weaker Indian consumer demand and general improvement in the global growth outlook weighed on the price.
Gold has rescaled $1,900 and may trade with a positive bias unless there is a strong rise in the dollar and bond yields.
Sriram Iyer, Senior Research Analyst, Reliance Securities
International spot gold and silver prices rebounded from the lows of the session to end higher on June 10 after data showed that in May, US consumer prices increased more than expected but eased fears of the Federal Reserve tapering its monetary support.
Domestic gold and silver ended in the green, tracking higher overseas prices.
The consumer price index (CPI) increased 0.6 percent in May after surging 0.8 percent in the previous month.
Domestic gold and silver prices could trade flat to marginally stronger on June 11, tracking overseas prices.
On the domestic front, MCX August gold was trading above Rs 49,200 and can rise to 49,350-49,500. Support is at 49,050-48,900.
MCX July silver holds support near 71,600-70,800 levels. Resistance is at 72,400-73,100.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and silver showed a small uptrend on June 10. The metals are ready for some upside movement, daily technical charts show. Traders are advised to go long in small dips and should also focus on these technical levels for the day:
August gold closing price: Rs 49,198; support 1 – 48,850; support 2 – 48,550; resistance 1-49,550 and resistance 2 – 50,000
July silver closing price Rs 71,999; support 1 – 71,200; support 2-70,500; resistance 1-72,700; resistance 2 –73,700.