International gold prices slipped on Thursday, just below a four-week high hit in the previous session as the dollar clawed up in Asia trade after falling the day before as US Federal Reserve Chair Jeremy Powell signalled “powerful support” for economic recovery.
Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Thursday tracking a muted trend in the international spot prices. Improved investor risk appetite and strength in rupee is weighing on the precious metal prices, analysts said.
At 11:10 am, gold futures for August delivery rose 0.07 percent to Rs 48,334 per 10 grams as against the previous close of Rs 48,299 and the opening price of Rs 48,270 on the MCX. Silver futures traded 0.45 percent higher at Rs 69,721 per kg. The prices opened at Rs 69,500 as compared to the previous close of Rs 69,412 per kg.
International gold prices slipped on Thursday, just below a four-week high hit in the previous session as the dollar clawed up in Asia trade after falling the day before as US Federal Reserve Chair Jeremy Powell signalled “powerful support” for economic recovery, said a Reuters report.
Spot gold fell 0.2 percent to $1,823.87 per ounce, having hit a peak since June 16 on Wednesday at $1,829.55. US gold futures were flat at $1,824.70.
Weighing on gold’s appeal, the dollar was up 0.1 percent in Asia trade, after Powell’s comments caused the greenback to retreat from recent peaks on Wednesday.
“US Federal Reserve’s view that rising inflation is not so worrisome until they see substantial progress towards full employment will create a solid breakout scenario for the yellow metal,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
“Gold on MCX crossed all the resistance levels yesterday with volume and managed to close at higher levels. We are bullish on gold and have continuously advised accumulating gold from past few days, fledging price uptrend is clearly visible on technical charts which could very soon take safe heaven metal to Rs 49,000 zone,” added Matta.
Meanwhile, strength in the Indian rupee amid buying in the domestic equity market is limiting gains in the yellow metal.
“The outlook for gold and silver looks positive. It is expected to remain volatile ahead of the US unemployment claims data. But gains in rupee may pressurize precious metal at higher levels,” said Ajay Kedia, Director, Kedia Advisory.
“On MCX, gold may find support at Rs 47,800 and resistance at Rs 48,600. Silver may face resistance at Rs 71,800 and support at Rs 69,400,” added Kedia.
Here are gold rates across major cities:
Here are silver rates across major cities:
(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.)