India Gold MCX August Futures trade higher on June 22 following positive trend in the international spot prices ahead of the US Federal Reserve Chairman Jerome Powell’s testimony to Congress later in the day.
Making gold less expensive for holders of other currencies, the dollar index slipped from a two-month high against its rivals. All eyes are now on Powell, who will appear before Congress at 1800 GMT, said a Reuters report.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.28 percent at Rs 47,206 for 10 grams at 0930 hours. July silver futures were trading 0.06 percent lower at Rs 67,750 a kilogram.
Gold and silver prices rebounded on Monday after last week’s meltdown. Both the precious metals settled on a positive note in the international markets on Monday.
Gold August futures contract settled at $1782.90 per troy ounce, and silver July futures contract settled at $26.03 per troy ounce. Both the precious metals also settled on a positive note in the domestic markets.
Gold and silver prices showed weakness in early trading sessions on Monday but after profit-taking in the dollar index at higher levels supported prices of both the precious metals, suggest experts.
“The U.S. Federal Reserve chairman Jerome Powell will address the house committee today and his remark on inflation, job creation, and the economy will give further directions to precious metals. We expect gold and silver prices to remain volatile in Tuesday’s session,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
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“Gold has support at $1768-1754 and resistance at $1796-1808 per troy ounce. At MCX, Gold has support at 46820-46600 and resistance at 47300-47550; silver is having support at 67100-66600 and resistance at 68200-68800,” he said.
Jain suggests buying in gold on dips around 46950 with a stop loss of 46680 for the target of 47400 and in silver around 67400 with a stop loss of 66800 for the target of 68500.
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodities Research at Kotak Securities
COMEX gold trades higher near $1789/oz. Gold has recovered from recent lows as the US dollar index shed some of its gains. Also supporting prices are rising inflation concerns, virus risks, and uneven recovery.
ETF activity however shows a lack of confidence in investors. Also weighing on price is Fed’s projection of early rate hikes.
Gold is seeing some relief rally however it may not continue for long as the US dollar may benefit from diverging monetary policy outlook.
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold and futures recovered some losses from their biggest weekly percentage drop since March 2020, due to a pause in the U.S. dollar's rally on Monday.
International spot and futures flat to higher on Monday, tracking gold’s gain and weakness of the dollar. Domestic gold and Silver witnessed a rebound on Monday, tracking overseas prices.
Domestic gold and silver prices could trade flat on Tuesday morning, tracking overseas prices.
On the domestic front, MCX Gold August supports are at 46753 and 46432. Resistances are at 47275 and 47476.
MCX Silver July holds support near 66942 and 66122. Resistances are at 68268 and 68774.
Expert: Abhishek Chauhan Head Commodities & Currencies, Swastika Investmart
Gold and Silver prices witnessed marginal recovery as a decline in the US Dollar Index against the major currencies kept the demand for Gold is intact at lower levels.
Gold is still holding its crucial support level of 46,600 while important resistance levels can be seen at Rs 47400 and 47700.
Selling pressure is likely to continue at higher levels. Silver has resistance at 68100 , while major resistance is placed at 69000 where selling can be seen.
Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Traders are advised to create buying positions in bullion's and should also focus on important technical levels given below for the day:
August Gold closing price 47,074: Support 1 - 46750, Support 2 - 46500, Resistance 1 - 47370, Resistance 2 - 47780.
July Silver closing price 67,762: Support 1 - 67000, Support 2 - 66300, Resistance 1 - 68500, Resistance 2 - 69220.Disclaimer
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