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Gold was trading flat-to-higher in the Indian market on August 13 following a muted trend in international spot prices on a firm dollar.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.2 percent higher at Rs 46,455 for 10 grams at 0930 hours. September silver futures were trading 0.34 percent higher at Rs 62,070 a kilogram.
Spot gold was unchanged at $1,752.78 an ounce. It is down 0.5 percent, so far, for the week, said a Reuters report. The dollar held firm near a more than four-month high, hit earlier this week, underpinned by data showing US producer prices posted their largest annual increase in more than a decade, the report added.
Gold and silver prices slipped on August 12 after higher-than-expected US PPI and core PPI data. Both precious metals settled on a weaker note in the international markets.
December gold futures contract settled at $1,751.80 a troy ounce and silver September futures contract settled at $23.12 a troy ounce. Both precious metals settled on a weaker note in the domestic markets.
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Rise in PPI and core PPI has an impact on the precious metal prices and gold corrected after testing its resistance point of $1,758 in the international markets, experts said.
“Higher than expected PPI leads consumer inflation and will send a signal to the policymakers to maintain moderate monetary policy for a longer period. We expect gold prices remain steady, while silver could also find support at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
At MCX, gold has support at 46,100-45,920 and resistance at 46,580-46,800. Silver has support at 61,500-61,100 and resistance at 62,200-62,800. We suggest buying in gold around 46,150 with a stop loss of 45,920 for the target of 46,600, he said.
Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and silver are trading in an oversold zone. Momentum indicator RSI has also given a positive divergence in four hourly as well as hourly charts.
Traders are advised to create buy positions in gold and silver near the given support levels. They should also focus on important technical levels given below for the day:
August Gold closing price Rs 46,363, support 1-46100, support 2 -45,850, resistance 1-4,6600, resistance 2 - 46,850.September silver closing price Rs 61,860, support 1-61,200, support 2- 60,600, resistance 1-62,500, resistance 2-63,125.
Sriram Iyer, Senior Research Analyst, Reliance Securities
International spot and futures gold prices ended flat to marginally higher on August 12 as expectations of an early taper of the Federal Reserve's asset purchases eased, offsetting a firmer dollar and yields.
International spot and futures silver prices ended weaker, tracking the strength of the dollar. Domestic gold ended higher, tracking overseas prices, while silver ended weaker on August 12.
On the domestic front, MCX October gold above 46,100 will continue its bullish momentum up to 46,480-46,600 levels. Support is at 46250-46050 levels.
Below 63,000, MCX September silver could test 61,700-61,000. Resistance is at 62,600-62,900 levels.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Comex gold was trading modestly higher near $1,756 after declining 0.1 percent the previous day. Gold inched up amid choppiness in the US dollar post recent gains as mixed inflation readings added to uncertainty about the Fed’s monetary tightening.
Also supporting prices are rising virus cases and concerns about the health of the Chinese economy. However, weighing on price is the firmness in the equities and lack of ETF investor buying. Gold may consolidate as the Fed's monetary tightening debate may keep pressure on prices.
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