Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
Domestic gold and silver prices edged higher on Friday amid a strengthening dollar that made bullion less attractive for holders of other currencies. A rally in Indian equity benchmarks to record highs dented the safe haven appeal of the precious metals. Global benchmarks were headed for a second straight weekly loss.
At 9:02 am, Multi Commodity Exchange (MCX) gold futures for October delivery traded with a gain of Rs 24 or 0.1 percent at Rs 46,100 per 10 grams, compared with their previous close of Rs 46,076 per 10 grams.
MCX silver (December) futures were at Rs 61,233 per kilogram, up by Rs 156 or 0.3 percent compared with their previous close of Rs 61,077 per kg.
On Thursday, the Sensex and Nifty50 benchmarks made a strong start at record highs with the 30-scrip index touching the 59,500 mark for the first time ever. Catch live market updates here
Globally, gold and silver rates inched higher but were set for a second weekly loss as investors awaited a key Federal Reserve meeting for clues on how soon the US central bank will start to taper its massive stimulus.
Spot gold was last seen trading 0.3 percent higher at $1,758.2 per ounce. US gold futures were up 0.1 percent at $1,758.7 per ounce. Silver was up 0.1 percent at $22.9 per ounce.
Bullion is viewed as a hedge against the inflation and currency debasement likely from widespread stimulus. The US central bank’s tapering could tackle both those conditions, diminishing gold’s appeal.
The dollar index -- which gauges the greenback against six other currencies -- was down 0.1 percent at 92.8, not far from near three-week highs.
The rupee ended marginally higher at 73.52 against the US dollar on Thursday. At the current level, it is down 0.6 percent against the US currency so far in 2021.
For the day, key support for MCX gold is at Rs 45,635 per 10 grams mark, according to Ravindra Rao, CMT , EPAT, VP-Head Commodity Research, Kotak Securities.
If the price fails to hold that level, it may weaken towards Rs 45,300. On the other hand, if it holds the support of Rs 45,635, it would rebound towards the immediate resistance at Rs 46,480 and Rs 46,700. In the near term, MCX gold futures are expected to move in the range of Rs 45,635-46,700 with a sideways to downside bias, Rao said.
"The near-term chart postures for both metals have deteriorated significantly this week, which is also inviting the shorter-term futures traders to play the short side of the market. Now both metals are trading in an oversold zone, which means any time we can see a good short covering rally in bullion," said Amit Khare, AVP-Research (Commodities) at Ganganagar Commodities.
Sandeep Matta, Founder, TRADEIT Investment Advisor, said the safe heaven "has fallen into a danger zone", and expected MCX gold to break the Rs 45,000 level if the $1,745 per ounce mark in the US does not hold.
He sees Rs 46,268 per 10 grams as a key level for domestic gold futures.