Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday tracking a trend in international spot prices weighed amid improved risk appetite and a stronger US dollar, analysts said.
At 11:35 am, gold futures for August delivery fell 0.26 percent to Rs 47,450 per 10 grams as against the previous close of Rs 47,573 and the opening price of Rs 47,500 on the MCX. Silver futures traded 0.25 percent lower at Rs 66,968 per kg. The prices opened at Rs 67,037 as compared to the previous close of Rs 67,137 per kg.
“The gold prices are likely to remain rangebound. Strength in the rupee amid improved risk appetite is weighing on the precious metals, while concerns over Covid Delta wave is restricting the downside,” said Ajay Kedia, Director, Kedia Advisory.
In the long term, the trend for gold and silver remains positive and hence ‘buy on drops’ strategy can be used, he added.
“On MCX, gold may find support at Rs 47,180 and resistance at Rs 47,850. Support for silver is seen at Rs 66,000 and resistance at Rs 68,500,” Kedia said.
International gold prices fell on Thursday, hovering near a more than one-week low, weighed down by a stronger dollar and a rebound in risk sentiment, while investors awaited the European Central Bank policy meeting later in the day, said a Reuters report.
Spot gold was down 0.2 percent at $1,799.18 per ounce, after hitting its lowest since July 12 at $1,793.59 in the previous session. US gold futures eased 0.2 percent to $1,799.20 per ounce.
The dollar index held steady, hovering below a 3-1/2-month peak ahead of the ECB policy decision. Meanwhile, benchmark US Treasury yields continued their bounce from five-month lows following a weak 20-year bond auction.
Meanwhile, a stronger Indian rupee amid gains in the domestic equity market is pressuring the precious metal prices.
“Gold and silver are giving some buying signal on the daily chart, momentum indicator RSI also indicating the same. Silver is looking stronger than gold in 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 on important technical levels for the day,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.
August Gold: Support 1 – Rs 47,400, Support 2 – Rs 47,200; Resistance 1 – Rs 47,720, Resistance 2 – Rs 47,920.
September Silver: Support 1 – Rs 66,700, Support 2 – Rs 66,000; Resistance 1 – Rs 67,500, Resistance 2 – Rs 68,000.
Here are gold rates across major cities:
Here are silver rates across major cities:
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