source : (https://www.cnbctv18.com)
Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Friday tracking gains in international spot prices as investors opted for short-covering after a steep fall in the previous session.
At 10:20 am, gold futures for August delivery rose 0.38 percent to Rs 47,138 per 10 grams as against the previous close of Rs 46,958 and the opening price of Rs 47,147on the MCX. Silver futures traded 1.11 percent higher at Rs 68,350 per kg. The prices opened at Rs 68,417 as compared to the previous close of Rs 67,599 per kg.
Gold and silver prices crashed more than 3 percent and 5 percent, respectively, on Thursday after the US Federal Reserve signalled to raise interest rates in 2023.
International gold rose on Friday, but was headed for its worst week since March 2020 after the US Federal Reserves hawkish message on monetary policy lifted the dollar higher and dented the safe-haven metals appeal, said a Reuters report.
Spot gold was up 0.6 percent at $1,784.16 per ounce. However, prices have fallen nearly 5 percent so far this week. US gold futures gained 0.5 percent to $1,783.20.
Afer a massive fall in the previous session, gold and silver prices are witnessing short-covering today. Weakness in Indian rupee amid volatile domestic equity market is also supporting the precious metals, said Ajay Kedia, Director, Kedia Advisory.
According to Kedia, gold is expected to trade sideways to positive.
On MCX, support for gold is seen at Rs 46,800 and resistance at Rs 47,450. Silver may find support at Rs 67,100 and resistance at Rs 69,800, he said.
Following hawkish comments from Fed officials, the dollar jumped to a two-month high and was on track for its best week in nearly nine months, while the US benchmark 10-year yield rose.
The FOMC outcome has triggered a surge in 10-Year US bond yield and rise in US dollar which weighed heavily on gold, said Sandeep Matta, Founder, TRADEIT Investment Advisor.
Fundamentally, he is of the view that rising inflation and rising interest rates mean economies are stronger, suggesting more consumer and commercial demand for metals and also needs to keep in mind that problematic inflation has historically been bullish for the yellow metal, as a hedge against rising prices.
At the current level, gold is in oversold zone and one daily positive closing will help gold to again regain $1,850 mark, Matta said.
Meanwhile, indicative of sentiment, holdings of SPDR Gold Trust, the worlds largest gold-backed exchange-traded fund, fell 0.4 percent to 1,041.99 tonnes on Thursday.
Gold and silver both are trading in an oversold zone in the daily chart, where we can see a pullback rally any time. The overall trend for both precious metals is still positive. So traders are advised to create long positions in bullion, said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.
August Gold: Support 1 Rs 46,700, Support 2 Rs 46,200; Resistance 1 Rs 47,250, Resistance 2 Rs 47,750
July Silver: Support 1 Rs 67,500, Support 2 Rs 66,900; Resistance 1 Rs 68,100, Resistance 2 Rs 68,700