Gold prices rose on Tuesday, supported by a drop in US bond yields and concerns over a relentless surge in Delta variant infections, although a stronger dollar kept bullion’s gains in check.
Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Tuesday tracking a positive trend in the international spot prices as investors turned towards safe-haven assets amid concerns over the spread of the delta variant of the coronavirus.
At 11:15 am, gold futures for August delivery gained 0.19 percent to Rs 48,184 per 10 grams as against the previous close of Rs 48,094 and the opening price of Rs 48,240 on the MCX. Silver futures traded 0.03 percent lower at Rs 67,225 per kg. The prices opened at Rs 67,409 as compared to the previous close of Rs 67,246 per kg.
“The rising coronavirus cases in Asian countries and a weak rupee is supporting the yellow metal prices. However, a strong US dollar is limiting gains. The momentum for gold and silver prices seem positive ging ahead,” said Ajay Kedia, Director, Kedia Advisory.
“On MCX, gold may find support at Rs 47,900 and resistance at Rs 48,650. Support for silver is seen at Rs 66,800 and resistance at Rs 68,200,” Kedia added.
International gold prices rose on Tuesday, supported by a drop in US bond yields and concerns over a relentless surge in Delta variant infections, although a stronger dollar kept bullion’s gains in check, said a Reuters report.
Spot gold was up 0.3 percent at $1,817.28 per ounce, after hitting a one-week low of $1,794.06 in the previous session. US gold futures gained 0.5 percent to $1,817.80.
“The confluence point for the gold is setting around $1,800 as both bulls and bears are applying their own forces to keep gold prices near to confluence point. The yellow metal has managed to gain a couple of dollars however trading in tremendous pressure despite all favourable conditions particularly wobbly global equity markets and declining bond yields,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
Benchmark 10-year Treasury yields were pinned near five-month lows. Lower yields reduce the opportunity cost of holding non-interest bearing gold.
Further, rising coronavirus cases across the United States and other countries fuelled fears of a pandemic resurgence, sending shockwaves through stock markets, as the highly contagious Delta variant appeared to be taking hold. Gold is often used as a safe store of value during times of political and financial uncertainty.
However, safe-haven gains for the US dollar limited gold’s appeal as the dollar index held firm near 3-1/2-month highs against its rivals. A stronger dollar makes gold more expensive for other currency holders.
Meanwhile, weakness in the rupee amid selling in the domestic equity market is supporting gold prices.
“Gold and silver are giving some pullback signal on the hourly chart, momentum indicator RSI also indicating the same on the hourly chart. Gold is looking stronger than silver on daily chart. Traders are advised to create a long position in gold and silver near support levels, traders should also focus on important technical levels for the day,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.
August Gold: Support 1 – Rs 47,800, Support 2 – Rs 47,600; Resistance 1 – Rs 48,370, Resistance 2 – Rs 48,600.
September Silver: Support 1 – Rs 66,600, Support 2 – Rs 66,000; Resistance 1 – Rs 67,860, Resistance 2 – Rs 68,500.
Here are gold rates across major cities:
Here are silver rates across major cities:
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