Gold prices leaped over Rs 47,000-mark on Tuesday. On the Multi-Commodity Exchange (MCX), gold futures reached 0.19 per cent at Rs 47,165 for 10 grams at 1030 hours IST on June 22. Silver continued to drop even on Tuesday. July silver futures were slump by 0.06 per cent lower at Rs 67,724 a kilogram.
In the global market, gold prices edged higher on Tuesday, as a pullback in the dollar lifted interest for the precious metal. Spot gold was up 0.1% at $1,784.83 per ounce, as of 0054 GMT. US gold futures gained 0.1% at $1,783.90 per ounce, according to Reuters. Silver eased 0.2% to $25.88 per ounce.
“Worldwide spot gold and silver rates have commenced flat this Tuesday morning in Asian trade ahead of Fed Chairman Powell’s declaration tonight. Technically, LBMA Gold Spot supports are at $1770 and $1758. Resistances are at $1791 and $1800. LBMA Silver supports are at $25.641 and $25.336. Resistances are at $26.166 and $26.386,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Market competitors will now listen to congressional speeches from a number of US central bank officials, including Fed Chair Jerome Powell, who is due to vocalize on Tuesday,” he added.
“Domestic gold and silver rates could begin outstretched on Tuesday morning, following overseas rates. On the domestic front, MCX Gold August supports are at Rs 46,753 and Rs 46,432. Resistances are at Rs 47,275 and Rs 47,476. MCX Silver July holds a support close to Rs 66,942 and Rs 66,122. Resistances are at Rs 68,268 and Rs 68,774,” he added.
“Gold has developed some relief from the ECB as it restates the central bank’s attitude that it is not prepared to look at reinforcing its monetary policy anytime soon. ECB President Christine Lagarde, expressed that inflation is being guided by temporary factors and should commence to fade through half of the year. Most of gold’s fear selling seems now done, anyhow the precious metal will stay sensitive to new macro data, especially employment and inflation, new Fed definition , the US dollar rate production and the US Treasury yields,” said Sandeep Matta, founder, TRADEIT investment advisor.
In the domestic market, “We expect short term recuperation in the market till Rs 47,650 until it’s trading above the levels of Rs 46,900 on regular basis. Key level for the gold August contract is Rs 46,952. Buy Zone above Rs 46,935 for the goal of Rs 47,270-47,475. Sell zones lesser than Rs 46,925 for the aim of Rs 46,748-46,530, said Matta.
“The gold market is finding some help from the European Central Bank (ECB) as its president Christine Lagarde restates the central bank’s attitude that it is not prepared to look at reinforcing its monetary policy anytime soon. The key outside markets are optimistic for the metals today, as the US dollar index is lower on a corrective pullback after solid gains posted last week,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
“Specially , August gold futures rates struck a five-week low on Friday. The gold bears still have the overall nearby technical advantage. A three-week-old price decline is in place on the daily bar chart. Bulls’ next increased price objective is to produce a close above solid resistance at $1,826.40. Bears’ next near-term falling price objective is pushing futures prices below solid technical help at $1,700.00. First resistance is observed at $1,800.00 and then at $1,815.00. First support was noticed at last week’s low of $1,761.20 and then at $1,750.00,” he added.
“July silver futures prices hit a nine-week low early on today. The silver bears have the overall nearby technical advantage. A four-week-old rate decline is in place on the daily bar chart. Silver bulls’ next increased price objective is closing rates above solid technical resistance at $27.00 an ounce,” he stated.
“Gold and silver are showing some improvement on the daily chart and both are trading near oversold areas, We can notice some crisis covering the rally in gold and silver. So merchants are recommended to create buying positions in bullion’s and dealers should also emphasise significant technical levels given below for the day: August Gold closing rate Rs 47,074, Support 1 – Rs 46,750, Support 2 – Rs 46,500, Resistance 1 – Rs 47,370, Resistance 2 – Rs 47,780. July silver closing price Rs 67,762, Support 1 – Rs 67,000, Support 2 – Rs 66,300, Resistance 1 – Rs 68,500, Resistance 2 – Rs 69,220,” he added.