India Gold June Futures trades flat with a negative bias on Friday tracking muted trend seen in the international spot prices. Experts suggest buying the dip for a target of Rs 47,700.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading lower by 0.12 percent at Rs 47,117 for 10 grams at 0935 hours. May silver futures were trading 0.27 percent lower at Rs 68,354 a kilogram.
Gold and silver prices gained on Thursday despite upbeat U.S. retail sales data and a decline in the unemployment claims. The yellow metal surpassed the crucial resistance of $1750 and reached a six-week high in the international market amid U.S. sanctions on Russia, and a decline in the US Dollar index.
Both the precious metals settled on a positive note in the international markets. Gold June futures contract closed at $1766.80 per troy ounce and Silver May futures contract settled at $25.96 per troy ounce. Both the precious metals were also settled on a positive note in the domestic markets.
“Gold prices gained on Thursday amid U.S. sanctions on Russia. Bond yield slipped below 1.55% on rising fears of increasing Federal Reserve budget deficit and jump in the inflations,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.
“We expect both the precious metals to remain firm in Friday’s session and continue to find support at lower levels. At MCX, Gold has support at Rs 46920-46770 and resistance at Rs 47400-47700 levels; silver has support at Rs 68100-67500 and resistance at Rs 69100-70000 levels,” he said.
Jain suggests buying in Gold around Rs 47000 with a stop loss of Rs 46700 for the target of Rs 47700, and in silver around Rs 68000 with a stop loss of Rs 67200 for the target of Rs 69500.
Track Live Gold Prices here
Ravindra Rao, CMT, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades marginally lower near $1763/oz after a 1.8% gain yesterday when it tested a seven-week high. Gold has benefitted from a decline in the US dollar index and the bond yield on the back of the Fed’s dovish monetary policy stance.
Gold is also supported by rising virus cases and increased geopolitical tensions. However, weighing on price is upbeat US economic data and continuing ETF outflows. Gold has again breached the $1750/oz level indicating positive momentum however mixed factors persist and fresh buying should be only at corrective dips.
Analyst: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices rose on Thursday supported by a drop in yields and geopolitical tensions between the United States and China as well as Russia.
Domestic gold and silver ended higher on Thursday, tracking the overseas prices. In regard to the increased tension with China, it seems that Taiwan is once again a major concern to the current administration.
In addition, President Joe Biden signed an executive order imposing new sanctions on Russia. Meanwhile, the U.S. Dollar ended lower and also supported upside.
Domestic gold and silver prices could trade flat to weaker this Friday morning tracking overseas prices.
Technically, MCX Gold June is trading above 21 as well as 50 Daily Moving Average and has given breakout above Rs 47000 levels which could push prices up to Rs 47300-47680 levels. Support is at Rs 47000-46800.
Technically, MCX Silver May holds support near Rs 67700-67000 levels. Resistance is at Rs 68500-69300 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.