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India Gold MCX October futures trade lower on Wednesday tracking muted trend in the international spot prices which were trading below $1,800 per ounce.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.51 percent lower at Rs 47,367 for 10 grams at 0930 hours. September silver futures were trading 0.64 percent lower at Rs 63,065 a kilogram.
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Gold and silver traded steady on Tuesday amid weakness in the dollar but upbeat US new home sales data restricted gains. Both the precious metals were settled on a positive note in the international markets on Tuesday.
Gold December futures contract settled at $1808.50 per troy ounce, and silver September futures contract settled at $23.89 per troy ounce. Both precious metals settled on a positive note in the domestic markets as well.
“Gold and silver prices to remain volatile this week ahead of the Jackson Hole symposium. Gold has support at $1796-1784 per troy ounce and resistance at $1822-1834 per troy ounce; silver has support at $23.55-23.20 per troy ounce and resistance at $24.20-24.55 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“At MCX, gold has support at 47400-47180 and resistance at 47800-47950; silver has support at 63100-62500 and resistance at 63900-64400 levels,” he said.
Jain suggests buying in gold on dips around 47330 with a stop loss of 47100 for the target of 47700.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices ended weaker on Tuesday but remained in a narrow trading band ahead of the Jackson Hole symposium.
International silver prices ended higher on Tuesday as the dollar continued to weaken on Tuesday.
Domestic gold ended marginally in the green, while silver rose on Tuesday, tracking overseas markets.
Technically, MCX Gold October could see sideways momentum where support is at 47450-47300 levels resistance is at 47700-47850 levels.
MCX Silver September above 63500 levels could see 64000-64900 levels. Support is at 63000-62400 levels. MCXBULLDEX May could trade on a Bullish note within the range of 14150-14400 levels.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades 0.7% lower near $1795/oz after a 0.1% gain yesterday. Gold fell after failing to build on the gains above $1800/oz level. Weighing on gold is some recovery in the US dollar index after recent losses, improved risk appetite, and continuing ETF outflows.
However, supporting price is mixed US economic data, persisting virus risks, and geopolitical tensions relating to Afghanistan.
Gold has slipped back below $1800/oz on Fed uncertainty however increasing risks to the global economy may keep prices supported.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
On Tuesday, we saw a small short-covering rally on both Gold and Silver. Gold and Silver are making a bottom, and momentum indicator RSI is creating a positive divergence in Silver.
Traders are advised to create fresh longs positions in Gold and Silver in small dips, and they should also focus important technical levels given below for the day:
August Gold closing price 47612, Support 1 - 47400, Support 2 - 47200, Resistance 1 - 47780, Resistance 2 - 48000.
September Silver closing price 63474, Support 1 - 62900, Support 2 - 62400, Resistance 1 - 64000, Resistance 2 - 64550.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.