Gold rate today: Yellow metal trades higher; may face resistance at Rs 47,370 per 10 grams

Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Tuesday following a positive trend in the international spot prices as the US dollar slipped from a two-month high level.

At 10:20 am, gold futures for August delivery rose 0.17 percent to Rs 47,155 per 10 grams as against the previous close of Rs 47,074 and the opening price of Rs 47,178 on the MCX. Silver futures traded 0.06 percent lower at Rs 67,720 per kg. The prices opened at Rs 67,755 as compared to the previous close of Rs 67,762 per kg.

“Most of gold’s panic selling seems now done, however, the precious metal will remain sensitive to new macro data, especially employment and inflation, new Fed annotations, the US dollar price performance and the US Treasury yields,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.

Matta anticipates short term recovery in the market till Rs 47,650 until gold is trading above the levels of Rs 46,900 on daily basis.

International gold prices edged higher on Tuesday, as a slight retreat in the dollar offered support to the safe-haven metal, ahead of US Federal Reserve Chairman Jerome Powell’s testimony to Congress later in the day, said a Reuters report.

Spot gold was up 0.3 percent at $1,787.42 per ounce, after rising more than 1 percent in the previous session. US gold futures gained 0.2 percent to $1,786.10 per ounce.

Making gold less expensive for holders of other currencies, the dollar index slipped from a two-month high against its rivals.

All eyes are now on Powell, who will appear before Congress at 1800 GMT.

Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.3 percent on Monday.

“Gold and Silver are showing some recovery on the daily chart and both are trading near oversold zone. We can see some short-covering rally in gold and silver. So traders are advised to create buying positions in bullion’s and traders should also focus important technical levels given below for the day,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.

August Gold: Support 1 – Rs 46,750, Support 2 – Rs 46,500; Resistance 1 – Rs 47,370, Resistance 2 – Rs 47,780

July Silver: Support 1 – Rs 67,000, Support 2 – Rs 66,300, Resistance 1 – Rs 68,500, Resistance 2 – Rs 69,220

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