Gold price in India exceeded Rs 47,000-mark on Monday. The yellow metal had improved after touching five-month low last week. On the Multi-Commodity Exchange (MCX), October gold contracts jumped 0.14 per cent to Rs 47,006 for 10 grams at 0920 hours on August 16. Therefore, Silver was in the red zone on Monday. The precious metal September future declined 0.06 per cent to Rs 63,203 on August 16.
In the international market, gold prices rose near a one-week high on Monday. Spot gold was flat at $1,779.51 per ounce by 0100 GMT, having earlier struck a high since Aug. 6 at $1,780.82. US gold futures were high 0.2 per cent to $1,781.20, according to Reuters. Silver dropped 0.2% to $23.69 per ounce. The US dollar index was a one-week low on Friday, making gold cheaper for holders of other currencies.
“Gold prices improved vividly in the last few sessions underpinned by fears over increasing Covid-19 cases along with softened concerns about the Fed’s prompt withdrawal of monetary stimulus. Therefore, we expect gold prices to remain positive towards Rs 47,300 level in the short-term,” said ICICI Direct.
“Gold is presently weak, gaining support and hovering near lows. It’s still restricted, but not breached the lows. It’s a wait and watch to see if it breaks the support of Rs 45,000 for 10 gram levels or pursue the momentary upside to Rs 47,500 for 10 gram. Same correlated as $1720 per ounce which could overthrow to $1580 per ounce or on the higher side beyond $1845 per ounce for an investment recommendation,” said NS Ramaswamy, Head of Commodities, Ventura Securities Ltd.
“We saw a short covering rally in gold and silver in the last two trading sessions. But we can again watch some following down movement in bullions as per current technical chart, Momentum indicator RSI also showing the same on daily chart, So traders are recommended to book their longs and can develop some short positions in Gold and Silver near given resistance levels, traders should also highlight important technical levels given below for the day : August Gold closing price Rs 46,940, Support 1 – Rs 46,750, Support 2 – Rs 46,500, Resistance 1 – Rs 47,100, Resistance 2 – Rs 47,260. September silver closing price 63238, Support 1 – Rs 62,350, Support 2 – Rs 61,500, Resistance 1 – Rs 63,700, Resistance 2 – Rs 64,125,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.