Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Monday tracking weakness in international spot prices that fell to their lowest in more than a week due to a stronger US dollar.
At 11:25 am, gold futures for August delivery fell 0.78 percent to Rs 48,520 per 10 grams as against the previous close of Rs 48,903 and the opening price of Rs 48,750 on the MCX. Silver futures traded 0.50 percent lower at Rs 71,865 per kg. The prices opened at Rs 72,000 as compared to the previous close of Rs 72,227 per kg.
International gold prices slipped on Monday to their lowest in more than a week, weighed down by a stronger dollar, while investors awaited cues from the Federal Reserve policy meeting this week with recent spikes in US consumer prices seen as a temporary blip, a Reuters report said.
Spot gold was down 0.6 percent at $1,864.58 per ounce, its lowest since June 4. US gold futures fell 0.6 percent to $1,867.60 per ounce.
“Gold is facing strong resistance at $1,900 and seems to wait for the Fed’s action. We are anticipating a fall till $1,856-$1,839 where the prices will try to make room for a strong upside swing. The discount in gold to crude ratio is also increasing which fundamentally will not last for the longer due to the low elasticity of supply,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
The dollar strengthened 0.1 percent to hover near a one-week high against its rivals, making gold more expensive for holders of other currencies.
Meanwhile, speculators reduced their net long positions in COMEX gold in the week ended June 8 and raised their net long positions in silver.
Focus now shifts to the Fed’s June 15-16 meeting for further clarity on the policymakers’ view on rising inflation and monetary policy going forward.
“Gold and silver both are showing some profit booking again on a daily technical chart. So traders are advised to go for short in small pullback and traders should also focus some important technical levels,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.
August Gold: Support 1 – Rs 48,600, Support 2 – Rs 48,300; Resistance 1 – Rs 49,200, Resistance 2 – Rs 49,500.
July Silver: Support 1 – Rs 71,700, Support 2 – Rs 70,500; Resistance 1 – Rs 72,700, Resistance 2 – Rs 73,300.
Here are gold rates across major cities:
Here are silver rates across major cities:
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