India Gold MCX October futures trade flat with a negative bias on Friday tracking muted trend in the international spot prices which fell on a firm dollar.
The US dollar index was up marginally, making gold more expensive for holders of other currencies, said a Reuters report. Fed Governor Christopher Waller said it may be possible for the U.S. central bank to start withdrawing its accommodative monetary policy sooner than some expect, it said.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.18 percent lower at Rs 47,516 for 10 grams at 0930 hours. September silver futures were trading 0.29 percent lower at Rs 66,805 a kilogram.
Gold and silver prices dipped on Thursday amid strength in the dollar index and a decline in unemployment claims in the United States. Both the precious metals settled on a weaker note in the international markets.
Gold December futures contract settled at $1808.90 per troy ounce, and silver September futures contract settled at $25.29 per troy ounce. Both the precious metals settled on a weaker note in the domestic markets.
“Gold and silver prices slipped on Thursday amid strength in the dollar index and gains in the benchmark 10-year bond yields in the United States. Traders are waiting for Friday's non-farm report for further directions in the gold and silver prices,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.
“We expect both the precious metals to remain volatile in Friday’s session. Gold has support at $1798-1784 per troy ounce and resistance at $1822-1834 per troy ounce. At MCX, gold has support at 47380-47150 and resistance at 47850-48000 levels,” he said.
Silver has support at 66600-66100 and resistance at 67400-68000 levels. Jain suggests buying in gold on dips around 47440 with a stop loss of 47280 for the target of 47850.
Technical indicators
COMEX gold trades marginally lower near $1804/oz after a 0.3% decline yesterday. Weighing on gold is firmness in the US dollar amid some hawkish comments by Fed officials. ETF outflows also show weaker investor interest. However, supporting price is increased geopolitical tensions, rising virus cases and mixed economic data from major economies.
Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and Silver are trading near the oversold zone as per the hourly chart. The momentum indicator RSI is also indicating some positive signs on the daily chart.
September Silver closing price 66,998, Support 1 - 66400, Support 2 - 65800, Resistance 1 - 67570, Resistance 2 - 68400.
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot and futures gold prices ended weak on Thursday as the U.S. Dollar and the benchmark bond yield rebounded from the lows of the session and weighed on the appeal of the yellow metal.
In other precious metals spot and futures silver prices ended with losses on Thursday, tracking the strength of the U.S. Dollar.
Domestic gold and silver prices ended with losses on Thursday, tracking overseas prices.
Domestic gold and silver prices could start in the red this Friday morning, tracking overseas prices.
On the domestic front, MCX Gold October is holding resistance near 47800-48000 levels. Support is at 47500-47400 levels.
On the domestic front, MCX Silver September holds a resistance 67700-68200 levels. Support is at 66300-65900 levels.
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