Gold Price Today: Yellow metal trades lacklustre; experts say buy on dips around Rs 49,180

Gold prices were lacklustre in early trade in the domestic futures market on June 2 amid mixed global cues. The subdued equity market supported gold prices and capped its fall as investors booked profits in riskier equities at all-time high levels.

Gold and silver had shown strong volatility in the previous session as better than expected US ISM manufacturing PMI data triggered profit-taking in both precious metals at higher levels.

However, due to weakness in the rupee both the precious metals settled on a positive note in the domestic markets.

Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research expects both the precious metals to remain volatile in today’s session and continue to hold their support levels.

"Gold is having support at $1,894-1,884 per troy ounce and resistance at $1,914-1,933 per troy ounce; silver is having support at $27.88-27.55 per troy ounce and resistance at $28.40-28.70 per troy ounce," said Jian.

"At MCX, gold is having support at Rs 49,180-48,980 and resistance at Rs 49,660-49,850; silver is having support at Rs 71,700-71,200 and resistance at Rs 73,300-73,800 levels," he said.

Jain suggests buying in gold on dips around Rs 49,180 with a stop loss of Rs 48,950 for the target of Rs 49,600 and silver around Rs 71,700 with a stop loss of Rs 71,100 for the target of Rs 73,300.

On the Multi-Commodity Exchange (MCX), August gold contracts were trading lower by 0.05 percent at Rs 49,399 for 10 grams at 09:45 hours. July silver futures were trading 0.50 percent lower at Rs 71,887 a kilogram.

COMEX gold trades in a narrow range near $1,900/oz after a near flat close in the previous session. Gold is choppy near $1,900/oz reflecting volatility in the US dollar and equity market as market players assess monetary policy amid economic growth and rising inflation pressure.

ETF inflows indicated some buying interest from investors however this is countered by weaker consumer demand in India owing to virus-related restrictions. Gold may witness choppy trade along with the US dollar and equity market however general bias may be on the upside until the US dollar recovers significantly.

LBMA Gold Spot could see a bounced back from the $1,900 level could see a bullish momentum up to $1,911-$1,925 levels. Support is at $1,882-1,875 levels.

LBMA Silver holds a strong resistance near $28.50-$29.66 levels. Support is at $27.30-$26.88 levels.

Domestic gold and silver prices could start flat this Wednesday morning tracking overseas prices.

On the domestic front, MCX Gold August could bounce back from Rs 49,200 levels could see an upside move up to Rs 49,550-49,850 levels. Support is at Rs 49,250-49,000 levels.

If MCX Silver July trades above Rs 72,000 could take prices up to Rs 73,700-74,100 levels. Support is at Rs 71,300-72,000 levels.

Gold and Silver both are in a bullish trend, but currently, both are trading in the overbought zone, so some profit booking is expected in the next 1-2 trading sessions.

Traders are advised to book profit on the long side and can also make some short positions on the higher side, traders should also focus on some important technical levels given below for the day.

MCX August Gold support 1 - Rs 49,100 | Support 2 - Rs 48,800 | Resistance 1 - Rs 49,730 | Resistance 2 - Rs 50,000.

MCX July Silver closing price Rs 72,248 | Support 1 - Rs 71,400 | Support 2 - Rs 70,500 | Resistance 1 - Rs 73,100 | Resistance 2 - Rs 73,900.

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