Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Monday tracking a positive trend in the international spot prices. Weak Indian rupee and safe-haven demand also lifted precious metal prices, analysts said.
At 11:00 am, gold futures for August delivery rose 0.33 percent to Rs 47,689 per 10 grams as against the previous close of Rs 47,534 and the opening price of Rs 47,647 on the MCX. Silver futures traded 0.47 percent higher at Rs 67,336 per kg. The prices opened at Rs 67,156 as compared to the previous close of Rs 67,024 per kg.
“The gold prices gained on rising concerns over Delta variant of coronavirus and easing US bond yields. The trend remains sideways to positive, hence buy on drops can be deployed. However, the Fed meeting will be in focus going ahead,” said Ajay Kedia, Director, Kedia Advisory.
“On MCX, gold may face resistance at Rs 47,920 and support is seen at Rs 47,350. Resistance for silver is placed at Rs 68,260 and support at Rs 66,400,” added Kedia.
International gold prices inched higher on Monday, supported by easing US bond yields and concerns over rising Delta variant infections, while investors focused on the Federal Open Market Committee’s meeting this week, said a Reuters report.
Spot gold rose 0.3 percent to $1,806.32 per ounce. US gold futures climbed 0.3 percent to $1,806.30.
Benchmark 10-year Treasury yields dipped, reducing the opportunity cost of holding non-interest bearing gold.
Meanwhile, the dollar index held close to a 3-1/2-month peak hit last week, weighing on the metal’s appeal. A stronger dollar makes gold more expensive for other currency holders.
Market participants now await the US central bank’s meeting on Tuesday and Wednesday. While no policy change is expected, investors will look out for clues on when the Fed might start reining in its easy monetary policies, the report added.
Meanwhile, a weak Indian rupee amid volatility in the domestic equity market supported the precious metals prices.
“Gold and silver are giving some pullback signal on the daily chart as well as 4 hourly charts, momentum indicator RSI also indicating the same. Silver is looking stronger than gold on the daily chart and creating a positive divergence in the daily chart. So traders are advised to create a long position in gold and silver near support levels, traders should also focus important technical levels for the day,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.
August Gold: Support 1 – Rs 47,300, Support 2 – Rs 47,000; Resistance 1 – Rs 47,780, Resistance 2 – Rs 48,101.
September Silver: Support 1 – Rs 66,500, Support 2 – Rs 66,000; Resistance 1 – Rs 67,525, Resistance 2 – Rs 68,000.
Here are gold rates across major cities:
Here are silver rates across major cities:
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First Published: IST