India Gold MCX June Futures trade higher on Tuesday after a negative close seen in the previous trading session. Experts advise investors to buy the yellow metal on dips for a target of Rs 46,700 per 10 gm while silver May futures is also a buy for a target of Rs 67,000 per kg.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.14 percent at Rs 46,483 for 10 grams at 0935 hours. May silver futures were trading 0.26 percent higher at Rs 66,299 a kilogram.
Gold and silver fell for the second straight day on Monday amid technical selling after recent gains. Despite the steady dollar, middle-east tensions and correction in global equity markets weighed on precious metals.
Gold June futures contract settled at $1732.70 per troy ounce, and Silver May futures contract settled $24.87 per troy ounce. Both the precious metals settled on a weaker note in the domestic markets.
“COMEX gold trades little changed near $1732/oz after a 0.7% decline in the previous session. Weighing on gold is a pause in the US dollar’s recent slide, general optimism about the US and global economy and continuing investor outflows.
However, supporting price is rising virus cases, loose monetary policy stance of major central banks and mixed economic data from major economies. Gold has retreated after failing to sustain above $1750/oz but we may not see extended losses amid Fed's dovish stance and rising virus concerns,” he said.
In the domestic market, Gold June futures contract settled at Rs 46419 per 10 gram, and silver May futures contract settled at Rs 66128 per one kilogram.
Gold and silver prices fell once again on Monday despite a steady dollar, but experts feel that volatility is likely to continue but any dips could be used as a buying opportunity amid weakness in the rupee.
“We expect both the precious metals could find support at lower levels in today’s session. A weakness in the rupee could also support prices of both the precious metals,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.
“Gold has support at $1718-1700 per troy ounce and resistance is placed at $1744-1758 per troy ounce. Silver has support at $24.55-24.20 per troy ounce and resistance at $25.20-25.55 per troy ounce,” he said.
Jain added that at MCX, Gold has support at Rs 46180-46000 and resistance at Rs 46660-46850 and silver is having support at Rs 65800-65200 and resistance at Rs 66600-67300 levels. “We suggest buying in gold around Rs 46300 with a stop loss of Rs 46100 for the target of Rs 46700 and in silver around Rs 65800 with a stop loss of Rs 65200 for the target of Rs 67000,” he added.
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Technical Indicators:
Analyst: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices fell on Monday even as the dollar and the benchmark yields eased on Monday. Domestic gold and silver ended weaker on Monday, tracking the overseas prices.
Powell Comments and CPI uncertainty pressures prices. Powell said recently that a coming upswing in inflation readings is likely to be transitory and won’t cause the Fed to change monetary policy.
Domestic gold and silver prices could trade weak this Tuesday morning tracking overseas prices.
Technically, MCX Gold June supports are at Rs 46000 and Rs 46200. Resistances are at Rs 46550 and Rs 46800.Technically, MCX Silver May resistances are at Rs 66800 and Rs 67500. Supports are at Rs 65900 and Rs 64800.
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