Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Monday as the international spot prices declined amid a stronger US dollar. Improved investor risk appetite and strength in rupee also weighed on domestic yellow metal prices, analysts said.
At 10:40 am, gold futures for August delivery fell 0.56 percent to Rs 47,656 per 10 grams as against the previous close of Rs 47,923 and the opening price of Rs 47,807 on the MCX. Silver futures traded 0.50 percent lower at Rs 68,950 per kg. The prices opened at Rs 69,000 as compared to the previous close of Rs 69,297 per kg.
“Gold prices are under pressure due to strength in Indian rupee amid buying in the domestic equity market. However, the general bias for the precious metals seems bullish on Covid concerns and buying gold on dips is recommended,” said Ajay Kedia, Director, Kedia Advisory.
“On MCX, gold may find support at Rs 47,450 and resistance at Rs 48,100. Support for silver is seen at Rs 68,200 and resistance at Rs 69,800,” Kedia added.
International gold prices eased on Monday as a slightly stronger dollar and buoyant equities dimmed the safe-haven metal’s appeal, with investors awaiting US inflation data and Federal Reserve Chairman Jerome Powell’s testimony this week, said a Reuters report.
Spot gold fell 0.2 percent to $1,803.56 per ounce. US gold futures were 0.4 percent lower at $1,803.9.
“Gold prices are holding the level of $1,800 an ounce however in search of some strong fundamental reasons for price action on upside. The market participants will try to find clues on tapering from Federal Reserve Chair Jerome Powell’s semi-annual monetary policy testimony this week,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
Gold’s decline was however capped by lingering concerns over the highly contagious Delta variant of the coronavirus that could hamper the pace of global economic recovery.
“Gold on MCX is also replicating the bullish global price behaviour, however, Rs 48,000 is going to be a key resistance level. After the stellar move in gold prices last week, we may expect a small correction in gold prices during the early hour for trading today however the outlook remains positive for the day and any significant dip can be an opportunity for accumulation,” Matta added.
Market participants now await US data including consumer price index on Tuesday and Powell’s testimony on Wednesday and Thursday for cues on policy tightening by the central bank.
“Gold and silver showing some profit booking in the hourly chart, momentum indicator RSI also facing resistance near 55-60 levels in the hourly chart. So traders are advised to create a short position in bullion near given resistance levels,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.
August Gold: Support 1 – Rs 47,700, Support 2 – Rs 47,500; Resistance 1 – Rs 48,121, Resistance 2 – Rs 48,350.
September Silver: Support 1 – Rs 68,700, Support 2 – Rs 68,100; Resistance 1 – Rs 69,900, Resistance 2 – Rs 70,450.
Here are gold rates across major cities:
Here are silver rates across major cities:
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