Gold prices in India inched lower on Thursday tracking downward trend seen in the international spot prices. On the Multi-Commodity Exchange (MCX), gold futures were down by 0.04% at Rs 49,580 for 10 grams at 0920 hours on June 3. However, silver edged higher on Thursday. On MCX, silver July future was up by 0.13% at Rs 72,775 a kilogram.
In the international market, gold prices inched lower on Thursday. Spot gold was down 0.2% at $1,904.36 per ounce, as of 0316 GMT. On Tuesday, gold prices hit their highest level since Jan. 8 at $1,916.40.US gold futures eased 0.1% to $1,907.70 per ounce. The US 10-year Treasury yield slipped below 1.60%, reducing the opportunity cost of holding non-interest bearing gold. The dollar index, however, edged 0.1% higher against its rivals, making gold less appealing for other currency holders.
“Gold and silver prices are a bit firmer in midday US trading Wednesday. The two metals are in normal pauses or corrections on the charts after gold hit a five-month high Tuesday. The technical postures for both metals remain fully bullish amid price uptrends in place on the daily bar charts. August gold futures were last up $1.50 at $1,905.20 and July Comex silver was last up $0.058 at $27.16 an ounce,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
“Gold and Silver both are in bullish trend. However, currently both are trading in overbought zone. So some profit booking is expected in the current week. So traders are advise to book profit in long side and can also initiate some short positions near given resistances, traders should also focus some important technical levels given below for the day: August gold closing price RS 49,601, Support 1 – Rs 49,380, Support 2 – Rs 49,100, Resistance 1 – Rs 49,820, Resistance 2 – Rs 50,100. July Silver closing price Rs 72,678, Support 1 – Rs 72,000, Support 2 – Rs 71,200, Resistance 1 – Rs 73,300, Resistance 2 – Rs 74,500.”
“International spot gold and silver prices have started flat to higher this Thursday morning in Asian trade. Technically, LBMA Gold Spot below $1900 level could see a bearish momentum up to $1884-$1877 levels. Resistance is at $1908-$1914 levels. LBMA Silver holds a strong resistance near $28.50-$29.66 levels. Support is at $27.30-$26.88 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver prices could start flat to higher this Thursday morning tracking overseas prices. On the domestic front, MCX Gold August below Rs 49,500 could see a downside pressure up to Rs 49,300-49,170 levels. Resistance is at Rs 49,600-49,800 levels. If MCX Silver July below Rs 72,700 could take prices up to Rs 71,800-70,600 levels. Resistance is at Rs 73,000-73,500 levels,” Iyer added.
“Gold has entered into new expiry and running in the bullish trend. Gold ETF, weakness in bitcoin and rupee strengthening are the key contributor in this rally which is likely to continue. However, it has been seen rallies immediately before the new expiry generally vanishes due to short covering of previous contract. Our view in gold is cautious for today. Key level for gold August Contract – Rs 49,525. Sell below Rs 49,525 for the target of Rs 49,400-49,250. Buy Above Rs 49,525 for the target of Rs 49,650-49,800,” said Sandeep Matta, founder, TRADEIT Investment Advisor.