Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Friday tracking a subdued trend in the international spot prices.
At 10:50 am, gold futures for August delivery eased 0.04 percent to Rs 46,850 per 10 grams as against the previous close of Rs 46,870 and the opening price of Rs 46,948 on the MCX. Silver futures traded 0.11 percent higher at Rs 67,806 per kg. The prices opened at Rs 68,109 as compared to the previous close of Rs 67,733 per kg.
“The gold prices are consolidating and are trading in a narrow range. Strong economic data from the US is weighing on the precious metals, but concerns over higher inflation are limiting the downside,” said Ajay Kedia, Director, Kedia Advisory.
Kedia expects gold prices to remain sideways to negative, going ahead.
“On MCX, gold may find support at Rs 46,450 and resistance at Rs 47,250. Support for silver is seen at Rs 66,500 and resistance at Rs 68,800,” Kedia added.
International gold prices traded flat on Friday as investors awaited US inflation data later today.
Spot gold was flat at around $1,773.5 per ounce; prices have risen 0.6 per cent so far this week. US gold futures eased 0.2 percent to $1,773.60 per ounce.
“It seems the hawkish tone from the Federal Reserve has driven the speculative hot money out of the gold market as the prices are almost steady and going nowhere throughout the day. Global prices are consolidating around $1,775 level from past one week and testing the skill level of traders. Bull needs to pass psychological level of $1,800 an ounce to regain some price action in this counter again,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
Matta expects gold on MCX to remain sideways and recommends trading as per the range and continue to focus on capturing the small profits in the counter.
The US dollar fell on Friday but hovered below a two-month high of 92.408 reached in the previous week.
Meanwhile, the Indian rupee traded flat amid volatile domestic equity market, supporting precious safe-haven metal.
“Gold and Silver both are trading at oversold zone. Momentum indicator RSI is also creating positive divergence on 4 hourly chart. So traders are advised to create a long position in gold and silver near support levels and traders should also focus on important technical levels for the day,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.
Support 1 – Rs 46,650, Support 2 – Rs 46,500; Resistance 1 – Rs 47,100, Resistance 2 – Rs 47,350.
July Silver: Support 1 – Rs 67,200, Support 2 – Rs 66,600; Resistance 1 – Rs 68,200, Resistance 2 – Rs 68,850.
Here are gold rates across major cities:
Here are silver rates across major cities:
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