India Gold MCX June futures trades lower on Tuesday following muted trend seen in the international spot prices as hopes of quick economic recovery lifted demand for riskier assets.
On the Multi-Commodity Exchange, June gold contracts were trading lower by 0.21 percent at Rs 48,450 for 10 grams at 0935 hours. July silver futures were trading 0.44 percent lower at Rs 71,497 a kilogram.
Gold and silver prices rebounded again on Monday amid dollar index trading near 3-month lows and pressure in crypto currencies. Both the precious metals settled on a positive note in the international markets.
Gold June futures contract settled at $1884.50 per troy ounce, and Silver July futures contract settled at $27.90 per troy ounce. Both the precious metals also settled on a positive note in the domestic markets.
“Gold traded firm on Monday, edging back near last week’s 4-1/2 month highs amid weakness in the dollar and bond yield. Gold is trading above 200 DMA and inflation concerns continue to support prices of precious metal,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research, said.
“We expect gold and silver prices to remain positive this week and gold could approach $1900 per troy ounce levels. Gold has support at $1872-1858 per troy ounce and resistance at $1892-1904 per troy ounce,” he said.
Jain added that for MCX, Gold has support at 48330-48180 and resistance at 48660-48850. “We suggest buying in gold around 48330 with a stop loss of 48050 for the target of 48700 and in silver around 71200 with a stop loss of 70500 for the target of 72500,” he added.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold ended flat, while silver ended marginally in the green in lackluster trade on Monday.
Domestic gold and silver ended the session with modest gains on Monday. The dollar witnessed a correction on Monday and capped the downside.
Domestic gold and silver prices could trade flat-to-marginally weaker this Tuesday morning tracking overseas prices.
Technically, MCX Gold June could remain range-bound. Resistances are at 48650 and 48800. Supports are at 48370 and 48200.
Technically, if MCX Silver July sustains above 71000 levels, we could witness the price test the resistances zones at 72100 and 73000. However, a trade below 71000 could pull prices to the supports at 70500 and further down to 69900.Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and Silver showed a positive trend on Monday. On the Multi-Commodity Exchange (MCX), June gold contracts closed higher at Rs 48,553 for 10 grams. July contract silver futures closed at Rs 71,811 a kilogram on Monday.
We can see some correction in both precious metals on Tuesday. So, traders are advised to take the advantage of correction and go long on dips. Traders also focus on important technical levels given below:
June Gold closing price 48,553, Support 1 - 48350, Support 2 - 48100, Resistance 1 - 48710, Resistance 2 - 48920.
July Silver closing price 71,811, Support 1 - 71100, Support 2 - 70500, Resistance 1 - 72320, Resistance 2 - 73200.
Ravindra Rao, CMT, EPATVP-Head Commodity Research, Kotak Securities Ltd
Gold weakened amid reduced safe-haven buying on the back of stability in equity markets and Israel-Hamas ceasefire and concerns about Indian consumer demand.
However, supporting price is continuing ETF inflows and loose monetary policy stance of major central banks. Gold's struggle to break past the $1900/oz level and stability in the equity market may make it vulnerable to profit-takingDisclaimer
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