India Gold MCX October futures trade lower on Tuesday tracking muted trend in the international spot prices as investors across the globe avoided taking big positions ahead of the key US non-farm payroll data due later this week.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.31 percent lower at Rs 47,939 for 10 grams at 0930 hours. September silver futures were trading 0.55 percent lower at Rs 67,831 a kilogram.
Gold and silver prices held on to their lower support levels and showed recovery in prices on Monday. Both the precious metals settled on a slightly positive note in the international markets.
Gold October futures contract settled at $1822.20 per troy ounce, and Silver September futures contract settled at $25.58 per troy ounce. Both the precious metals settled on a positive note in the domestic markets.
Gold and silver prices got support from the decline in benchmark 10-year bond yields in the United States and downbeat manufacturing data.
Global economists have predicted that mixed economic growth in the United States in the last few weeks could force the U.S. Federal Reserve to halt its plans for bond tapering by the end of the year, which would be bullish for precious metals, suggest experts.
“We expect both the precious metals to remain volatile and continue to hold its key support levels; any decline in the prices would be an opportunity for buying at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“At MCX, Gold has support at 47850-47660 and resistance at 48300-48550; silver is having support at 67500-67200 and resistance at 68200-68600 levels,” he said.
Jain suggests buying in gold on dips around 47920 with a stop loss of 47660 for the target of 48400 and in silver around 67500 with a stop loss of 67100 for the target of 68400.
Technical indicators
Expert: Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities
COMEX gold trades modestly lower near $1815/oz after a 0.3% gain yesterday. Gold is choppy but range-bound above $1800/oz amid volatility in equities and US dollar and as market players assess Fed’s monetary policy stance.
However, supporting price is rising virus concerns, concerns about a slowdown in the Chinese economy, and mixed economic data from major economies.
Gold may remain choppy with larger financial markets but virus concerns and global growth worries may keep prices supported.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Ltd
On Monday, we have seen a small movement in Gold and Silver. The daily technical chart is showing some more profit booking, and the momentum indicator, RSI, is also indicating the same on the hourly chart.
Traders are advised to create a fresh short position near given resistance, and should also focus on important technical levels given below for the day:
August Gold closing price 48,086: Support 1 - 47900, Support 2 - 47600, Resistance 1 - 48200, Resistance 2 - 48300.
September Silver closing price 67,889: Support 1 - 67500, Support 2 - 67000, Resistance 1 - 68300, Resistance 2 - 68800.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices rebounded from the lows of the session to end flat on Monday.
Subdued dollar and weak bond yields helped markets. Domestic gold and silver prices were flat on Monday, tracking subdued overseas prices.
Domestic gold and silver prices could start flat to weak this Tuesday morning, tracking subdued overseas prices.
Technically, MCX Gold October is below the resistance near 48000 and a sustained below could continue keep prices subdued up to 47800-47600 levels. Resistance is at 48100-48250 levels.
MCX Silver September holds a resistance 68200-69000 levels. Support is at 67100-66700 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.
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