Gold was were trading flat-to-lower on July 15, tracking a muted trend in international spot prices. On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.06 percent lower at Rs 48,269 for 10 grams at 0930 hours. September silver futures were trading 0.16 percent higher at Rs 69,520 a kilogram.
In the international market, spot gold was steady at $1,824.81 an ounce, having hit a peak since June 16 on July 14 at $1,829.55, a Reuters report said.
At the beginning of his two-day testimony before the Congress, Federal Reserve chairman Jerome Powell stuck to the view that the current price increase is transitory and that the central bank is focused on getting as many people back to work as possible, it said.
Fall in the dollar index and 10-year bond yields lifted gold after Powell’s testimony. Both precious metals settled on a positive note in the international market.
August gold futures contract settled at $1,825 and September silver futures contract settled at $26.27 a troy ounce. Both metals settled on a positive note in the domestic markets.
“We expect both precious metals to remain volatile in today’s session ahead of the US unemployment claims data but gold could show further strength in upcoming sessions,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“At MCX, gold has support at 48,100-47,920 and resistance at 48,550-48,720. Silver has support at 68,900-68,500 and resistance at 69,900-70,300 levels. We suggest buying in gold around 48,100 with a stop loss of 47,880 for the target of 48,600 and in silver around 69,200 with a stop loss of 68,700 for the target of 70,100,” he said.
Technical indicators
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
Comex gold was trading marginally higher near $1,826 after rising 0.8 percent in the previous session. Gold rose to $1,831.1 in intraday trade, the highest level since June 17, and held on to its gains.
It gained amid a weaker dollar and softening US 10-year bond yields as uncertainty over the Fed’s stance on tapering bond purchases weighed on sentiment.
The focus would be back on Powell's second day of testimony to Congress to further assess the monetary situation.
US unemployment claims will also be looked at, as an increase in claims might pressurise the dollar and, in turn, support the yellow metal. The general bias may be on the upside, provided the dollar stays lower.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and silver are showing some signs of profit-booking on the hourly technical chart. Traders are advised to create short positions in bullions and also focus on important technical levels given below for the day:
August Gold closing price: Rs 48,299; support 1: 48,000, support 2: 47,800; resistance 1: 48,550 and resistance 2: 48,777.
September silver closing price: Rs 69,412; support 1: 68,800; support 2: 68,000; resistance 1: 70,000; resistance 2: 70,500.
Sriram Iyer, Senior Research Analyst, Reliance Securities
International spot gold and silver surged higher on July 14 after Powell reassured investors that the central bank would continue its accommodative monetary policy despite a spike in inflation readings.
Domestic gold and silver prices also ended the session with solid gains, tracking overseas markets.
Powell, in prepared remarks before a congressional hearing, said the US job market is still a way off from the progress the Fed wants to see before reducing its support for the economy, while current high inflation will ease in the coming months.
Domestic gold and silver prices could start flat to marginally higher on July 15, tracking overseas prices.
On the domestic front, MCX August gold crossed 48,000 with increase in volume activity. If it sustains above 48,200, gold can see an upside momentum up to 48,370-48,500.
MCX September silver above 69,000 could see a bullish momentum up to 69,900-70,900 levels. Support is at 68,900-68,000.
Abhishek Chauhan Head Commodities & Currencies, Swastika Investmart
Gold Prices rallied on July 14 after higher than expected US inflation numbers kept the demand for gold intact as a hedge against inflation.
Falling US bond yields and a correction in the dollar also supported gold and silver prices.
However, robust economic data from the US created hurdle for the metals but uncertainty over rising inflation ramped up their glitter.
Gold has resistance at 48,800, above it, the metal may move towards 49,300 levels. It has support at 47,800. Silver has resistance at 70,200 and support at 68,400.
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