Domestic gold prices opened negative for the week while global prices climbed higher supported by a fall in US 10 year Treasury yields. Global outlook, however, remained vulnerable to aggressive interest rate hikes by central banks.
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Domestic gold prices opened negative for the week while global prices climbed higher supported by a fall in US 10-year Treasury yields. Global outlook, however, remained vulnerable to interest rate hikes by central banks.
Rupee opened lower at 77.66 against the US dollar on Monday after a previous close of 77.62. Dollar Index — which gauges strength in the greenback against six peers —was marginally down at 102.225.
MCX gold futures for August delivery were down by Rs 285 at Rs 50,984 per 10 gm as of 9:00 am. MCX silver futures followed suit and were down by Rs 676 or 1.1 percent to Rs 61,660 per kg.
Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, expects both the precious metals to remain volatile in this week. In the domestic market, he sees gold having support at Rs 50,780 - Rs 50,600 and resistance at Rs 51,220 - Rs 51,440 while silver is having support at Rs 61,200 - Rs 60,700 and resistance at Rs 62,220 - Rs 62,750.
Jain suggests buying silver on dips around Rs 61,200 with a stop loss at Rs 60,660 on a daily closing basis for the target of Rs 62,400.
According to Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, "Gold has come off the highs but is still holding near $1850/oz level however with US economic numbers and Fed comments suggesting that the central bank may continue with tightening, we may not see much gains."
First Published: IST