India Gold October Futures trades lower on Monday after closing in the green in the week gone by. Experts are of the view that the yellow metal is likely to remain volatile and crucial supports is placed at Rs 51300-51500 levels.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading lower by 0.20 percent at Rs 51,611 per 10 gram at 0920 hours. September silver futures were trading 0.19 percent lower at Rs 67,750 per kg.
Both the precious metals recovered from their lows and settled on a positive note last week. The international Gold settled with a weekly gain of 1.21 percent at $1957.75 per troy ounce and silver also settled with a gain of 0.94 percent at $26.96 per troy ounce at Comex division.
Gold futures contract settled with a gain of 2.05 percent at 51715 per 10 gram and the silver futures contract settled with a gain of 0.91 percent at 67877 per one kilogram.
Last week, the U.S. Federal Reserve kept key interest rates unchanged to 0.25% and hints for lower interest rates until 2023 and keeps inflation targets higher at 2 percent to support precious metal prices.
The US Dollar index gained after the Fed meeting outcome but was unable to sustain at higher levels as U.S. unemployment is still at very higher levels, suggest experts. This week the U.S. Federal Reserve Chairman testifies will give directions to the precious metals prices, they say.
“We expect both the precious metals to continue to hold their key support levels of $1920 per troy ounce and $26.55 per troy ounce respectively on a weekly closing basis. Gold is having support at $1944-1930 per troy ounce and resistance at $1966-1978 per troy ounce,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, Gold is having support at Rs 51550-51330 and resistance at 51920-52100 in today's session. Silver is having support at $26.70-26.55 per troy ounce and resistance at $27.20-27.55 per troy ounce. At MCX, silver is having support at Rs 67200-66800 and resistance at Rs 68500-69100 levels in today's session,” he said.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
Gold prices saw a second straight weekly gain, as the dollar weakened and on concerns about economic recovery from the coronavirus crisis.
The U.S. Federal Reserve vowed on Wednesday to keep interest rates near zero for a long time, while the United States considered a proposed $1.5 trillion coronavirus aid bill.
All eyes will be on the Federal Reserve speakers this week starting with Fed Chairman Jerome Powell and FOMC Member Brainard.
Domestic bullion could start flat to marginally lower on Monday, tracking the international prices.
Technically, MCX Gold October is struggling near its 21-Daily Moving Average which is placed at Rs 51400 levels below which will continue downside momentum up to Rs 51200-50900 levels. Resistance holds at 51800-52050 levels.
MCX Silver December contract could see some sideways direction in the range of Rs 66800-68700 levels in the coming session.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades mixed near $1960/oz after a 0.6% gain in the previous session. Choppiness in the equity market and US dollar has led to mixed trade in gold.
Supporting price is ETF inflows and increasing concerns about virus spread, the impasse over US fiscal stimulus, US-China tensions. Gold may remain choppy unless there is a clear direction in the equity market or US dollar.
Hareesh V, Head of Commodity Research, Geojit Financial Services
Gold may continue to trade choppy again on rising virus cases and a weaker U.S dollar. However, COVID vaccine optimism remains hit the safe-haven demand of the metal while hopes of fresh fiscal stimulus measures offering lower-level support.
Technical Outlook (London spot): A range-bound trading inside $1880-1975 an ounce is expected initially and breaking any of the sides would suggest a fresh direction to the commodity.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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