Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Monday, while the silver prices declined more than one percent.
At 11:25 am, gold futures for August delivery eased 0.06 percent to Rs 46,702 per 10 grams as against the previous close of Rs 46,728 and opening price of Rs 46,900 on the MCX. Silver futures traded 1.24 percent lower at Rs 66,760 per kg. The prices opened at Rs 67,647 as compared to the previous close of Rs 67,598 per kg.
“The gold prices are in a technically oversold territory. There may be a short-covering move but any upside looks capped. Hence, selling gold on any jump in prices is advised,” said Ajay Kedia, Director, Kedia Advisory.
“On MCX, gold may find support at Rs 46,240 and resistance at Rs 46,980 level. Support for silver is seen at Rs 65,600 and resistance at Rs 67,800 level,” Kedia added.
International gold prices gained on Monday, after posting a 6 percent drop last week, as a retreat in US Treasury yields bolstered the non-yielding metal’s appeal, a Reuters report said.
Spot gold rose 0.5 percent to $1,771.98 per ounce, while US gold futures edged up 0.3 percent to $1,772.5 per ounce.
The benchmark US Treasury yields fell to their lowest since late February, reducing the opportunity cost of holding bullion, which pays no return.
“Gold prices have plunge nearing $100 after the FOMC outcome and it could take some more time for gold to work through all the selling pressure. Gold needs to hold $1,774 level on a daily closing basis to remain in bullish consolidation zone, otherwise, we may see $1,700 very soon,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
“Gold on MCX is also trading with negative sentiments and a risky entry point both for traders and investors. We advise to stay put for some time and wait for the levels to break either side,” Matta added.
Meanwhile, weakness in the Indian rupee amid selling in the domestic equity market may lift appeal for the safe-haven metal.
Here are gold rates across major cities:
Here are silver rates across major cities:
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