Gold was trading falt in the Indian market on August 5 with a negative bias following a muted trend in international spot prices amid firm dollar after a top US Federal Reserve official signalled the possibility of bringing forward policy tightening.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.09 percent lower at Rs 47,850 for 10 grams at 0930 hours. September silver futures were trading 0.24 percent lower at Rs 67,436 a kilogram.
Gold pared most overnight gains following Fed vice chair Richard Clarida’s remarks that conditions for raising interest rates could be met by the end of 2022, a Reuters report said.
Both precious metals settled on a mixed note in the international markets. December gold futures contract settled at $1,814.50 a troy ounce and September silver contract settled at $25.46 a troy ounce. Gold and silver settled on a mixed note in the domestic markets.
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October gold futures contract settled at Rs 47,892 a 10 gram and September silver futures contract settled at Rs 67,601 a kilogram.
“We expect both precious metals to remain volatile in Thursday’s session and gold is expected to hold $1,800 per troy ounce on a closing basis,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.
“Gold has support at $1,804-1,788 per troy ounce and resistance at $1,834-1,835 per troy ounce; silver is having support at $25.20-24.88 per troy ounce and resistance at $25.70-26.00 per troy ounce,” he said.
“At MCX, gold has support at 47,700-47,550 and resistance at 48,100-48,330 levels; silver is having support at 67,200-66,800 and resistance at 68,100-68,500 levels,” added Jain. He recommends buying gold around 47,800 with a stop loss of 47,580 for the target of 48,200.
Expert: Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities
Comex gold was trading marginally lower near $1,812 after a near flat close the pervious day. Gold is pressurized by firmness in the US dollar amid some hawkish Fed comments.
Weaker investor interest and slack retail buying also put pressure on the price. However, supporting price is safe-haven buying amid rising virus cases, uneven economic recovery and concerns about the Chinese economy.
Gold may continue to waver amid choppy equities, however, increasing economic uncertainty may keep prices supported.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Traders are advised to create fresh long positions near given support levels. They should also focus on important technical levels given below for the day:
August Gold closing price Rs 47,892; support 1 – 47,500; support 2-47,250, resistance 1–48,220 and resistance 2-48,600.
September silver closing price; Rs 67,601; support 1 – 66,700; support 2-66,000; resistance 1 -68,450 and resistance 2-69,270.
Abhishek Chauhan Head Commodities & Currencies, Swastika Investmart
Gold gave up the previous day’s gain of 1 percent as investors were jittery on the expected hawkish Fed outlook. Fed's Clarida said he can certainly see tapering being announced later this year.
On MCX, gold has support at 47,700, below this level, selling pressure may grow to 47,200. It has immediate resistance at 48,100. Silver has support at 67,000, below this level, it may test the previous week's low of 66,000.
Sriram Iyer, Senior Research Analyst, Reliance Securities
International spot and futures gold prices ended flat on August 4. In other precious metals spot and futures silver prices ended with small losses, tracking strength in the dollar.
Domestic gold ended flat to marginally higher, while silver prices ended with losses, tracking overseas prices.
Domestic gold and silver prices could start marginally in the red on August 5, tracking overseas prices.
On the domestic front, MCX October gold is holding resistance near 48,000, lower than that prices can slip to 47,800-47,600. Resistance is at 48,100-48,250 levels.
MCX September silver holds a resistance 68,200-69,000. Support is at 67,100-66,700 levels.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.