After trading flat for two days, gold prices in India rose marginally on Wednesday. On the Multi-Commodity Exchange (MCX), gold futures were up by 0.08 per cent at Rs 49,166 for 10 grams at 0915 hours. July silver futures were trading 0.21 per cent higher at Rs 71,382 a kilogram.
Gold prices inched higher on Wednesday, helped by a fall in US bond yields. Spot gold was up 0.1% at $1,893.78 per ounce, as of 0045 GMT. US gold futures edged 0.1% higher to $1,896.60 per ounce, news agency Reuters reported. The benchmark 10-year Treasury yields fell to their lowest in more than a month, reducing the opportunity cost of holding non-interest bearing gold.
“Investors looked ahead to US inflation data that could influence the Federal Reserve’s timeline to taper monetary support. On the data front, the US trade deficit narrowed in April to $68.9 billion or 8.2% buoyed by American exports. Job openings in April soared to a record 9.3 million was well above the 8.3 million in March according to the labour department’s job openings,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Holdings of SPDR Gold Trust ETF and Shares Silver Trust fell by 0.38% and 0.04% respectively on Monday from Friday. International spot gold and silver prices have started flat this Wednesday morning in Asian trade as investors await fresh cues in the form of CPI data due on Thursday. However, a stronger dollar and stronger bond yields could cap upside. Technically, LBMA Gold Spot is struggling to sustain $1900 level below which could trade on Bearish note where support is at $1885-$1877 levels. Resistance is at $1899-$1910 levels. LBMA Silver could trade in a range of $27.00-$28.65 levels,” he added.
“Domestic gold and silver prices could start flat this Wednesday morning tracking overseas prices. On the domestic front, MCX Gold August below 49000 could see a Bearish move up to 48850-48700 levels. Resistance is at 49100-49200 levels. MCX Silver July holds a support near Rs 71,000-70,200 levels. Resistance is at Rs 72,100-72800 levels,” Iyer mentioned.
“Gold and silver prices are modestly down in midday US trading Tuesday, on some routine profit taking from the shorter-term futures traders. Still, the sellers are constrained by the still-bullish technical chart postures in place for both metals. However, the buyers of the safe-haven metals are tentative at present amid little risk aversion in the global marketplace. August gold futures were last down $4.40 at $1,893.20 and July Comex silver was last down $0.273 at $27.745 an ounce,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
“Gold and silver both are showing profit-booking pressure on daily technical chart. So traders are advised to go for short near resistance levels and traders should also focus some important technical levels given below for the day: August gold closing price 49,127, Support 1 – Rs 48,850, Support 2 – Rs 48,650, Resistance 1 – Rs 49,400, Resistance 2 – Rs 49,800. July silver closing price Rs 71,231 Support 1 – Rs 70,700, Support 2 – Rs 70,000, Resistance 1 – Rs 71,700, Resistance 2 – Rs 72,400,” he mentioned.
“Gold has been consolidating around $1900 level ahead of the taper talk and seems not in hurry to cross the $1900 mark in the global market. The trend is bullish but the price action remains tight in congestion. Dollar is a major driver of gold and it is expected to remain week unless the Federal Reserve raises the interest rates. Gold on MCX was also dull and most of the time traded within the small range however showing strength as making higher high and higher low.
Key level for GOLD August contract – Rs 49,033. Buy Zone Above – Rs 49,033 for the target of Rs 49,275-49,485. Sell Zone Below – Rs 48,975 for the target of Rs 48,700-48,500,” said Sandeep Matta, founder, TRADEIT investment advisor.