Gold was trading lower in the Indian market on May 21 following a muted trend in international spot prices as optimism around a rebound in the US economy lifted appeal for riskier assets.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading lower by 0.34 percent at Rs 48,377 for 10 grams at 0935 hours. July silver futures were trading 0.76 percent lower at Rs 71,758 a kilogram.
Gold and silver remained steady in the international market the previous day amid weakness in the dollar index. Both the precious metals settled on a slightly positive note.
June gold futures contracts settled at $1,881.90 per troy ounce and July silver futures contracts ended at $28.07 per troy ounce.
Both metals settled on a slightly weaker note in the domestic markets on a stronger rupee.
On May 20, gold and silver showed extreme volatility as traders and investors debated the US Federal Reserve's April monetary policy meeting minutes, experts said.
“We expect both precious metals to remain volatile in today’s session ahead of the US flash manufacturing data. Gold has support at $1,872-1,858 per troy ounce and resistance at $1,892-1,902 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research said.
“At MCX, gold has support at 48,330-48,180 and resistance at 48,770-48,920; silver has support at 71,700-71,400 and resistance at 72,700-73,200 levels. We suggest buying in gold on dips around 48,250 with a stop loss of 48,000 for the target of 48,770,” he said.
Track Live Gold Prices here
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold gave up early losses on May 20 to finish with modest gains, up a sixth straight session. Silver ended marginally in the red.
In the domestic market, gold and silver ended the session with losses. A weak dollar and the benchmark yields lent support.
The Fed taking a hawkish stance on interest rates and not being too perturbed by inflation will lend support to gold.
Domestic gold and silver prices could trade flat to marginally higher on May 21 morning, tracking overseas prices.
Technically, if MCX June gold breaks out above Rs 48,400, we could witness an upside push up to 48,800-49,100 levels. Support is at 48,350-48,150.
Technically, MCX July silver has given a breakout above 72,000 that can take prices to Rs 73,200-74,000 levels. Support is at 71,500-70,400 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and silver showed a negative trend on May 20. On MCX, June gold contracts closed 0.27 percent lower at Rs 48,544 for 10 grams.
July contract closed 0.10 percent lower at Rs 72,304 a kilogram. We saw some profit-booking in both precious metals, which may continue on May 21. Traders are advised to go short on rise and also focus on important technical levels given below:
June gold closing price: Rs 48,544, Support 1: 48,300, Support 2: 48,000, Resistance 1: 48,770, Resistance 2: 49,100.
July silver closing price: Rs 72,304, Support 1: 71,700, Support 2: 70,800, Resistance 1: 73,000, Resistance 2: 73,700.
Ravindra Rao, CMT, EPATVP-Head Commodity Research, Kotak Securities Ltd
Comex gold was trading 0.5 percent lower near $1,872/oz after a near flat close the previous day. Weighing on the gold price is stability in the equity market, easing Israel-Palestine tensions, the prospect of monetary tightening discussion by Fed, and concerns about Indian consumer demand.
However, supporting price is ETF inflows, rising virus cases in Asia and mixed economic data from major economies and dovish comments from central bank officials.
Gold may remain choppy with the dollar and equities as market players assess the Fed's monetary policy stance. However, the failure to break $1,900 level and the prospect of tapering of bond purchases by the Fed may make it vulnerable to profit taking.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.