Buy gold on dips around 47550 with a stop loss of 47300 for the target of 48000 and in silver around 68800 with a stop loss of 68400 for the target of 69900, suggest experts.
India Gold MCX August Futures trades higher on Tuesday following positive trend in the international spot prices as the dollar weakened slightly ahead of the US inflation data.
Spot gold rose marginally to $1,807.22 per ounce. The dollar index was down about 0.1%. A weaker dollar makes gold less expensive for other currency holders, said a Reuters report.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.16 percent higher at Rs 47,850 for 10 grams at 0930 hours. September silver futures were trading 0.22 percent higher at Rs 69,531 a kilogram.
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Gold and silver showed extreme volatility on Monday and settled on a mixed note in the international markets. Gold August futures contract settled at $1805.90 per troy ounce and silver September futures contract settled at $26.24 per troy ounce. Both the precious metals settled on a mixed note in the domestic market.
Gold and silver prices got support from the fresh coronavirus outbreak in the Britain and European Union. Prices also get support after the EU president reaffirms that the bond-buying program continues until March, 2022, suggest experts.
We expect both the precious metals to remain volatile in Tuesdays session and continue to hold key support levels, any decline in the prices would be an opportunity for buying at lower levels, Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
At MCX, Gold has support at 47550-47330 and resistance at 48000-48180 levels; silver has support at 68800-68400 and resistance at 69900-70400 levels, he said.
ain suggests buying in gold on dips around 47550 with a stop loss of 47300 for the target of 48000 and in silver around 68800 with a stop loss of 68400 for the target of 69900.
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold ended flat and was off session lows while silver prices ended higher on Monday.
Domestic gold prices ended lower, but were off session lows, while silver prices ended with small gains on Monday. The dollar and recovery of bond yields ended with gains on Monday and capped upside.
Domestic gold and silver prices could start flat this Tuesday morning, tracking overseas prices.
On the domestic front, MCX Gold August holds strong support near 47600-47400 levels. Resistance is at 47900-48100 levels.
MCX Silver September below 69500 levels could see a Bearish momentum up to 68900-68000 levels. Resistance is at 70100-71000 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold is showing more weakness compared to Silver since the last 2 trading sessions. The momentum indicator RSI is indicating some profit booking signal on the daily chart.
Traders are advised to create a short position in Bullion's near given resistance levels, and should also focus on important technical levels given below for the day :
August Gold closing price 47,774: Support 1 - 47500, Support 2 - 47200, Resistance 1 - 48000, Resistance 2 - 48225.
September Silver closing price 69,375: Support 1 - 68800, Support 2 - 68100, Resistance 1 - 70000, Resistance 2 - 70610.
Abhishek Chauhan Head Commodities & Currencies, Swastika Investmart
US Dollar is witnessing a rangebound movement and is not able to sustain at higher levels giving support to Gold prices. Gold in MCX is sustaining above 200-Daily EMA.
However, the US 10-year yield also rebounded from lower levels which are keeping Gold prices trading in a narrow range. Gold has support at 47400 and resistance at 48000. Silver has support at 68400 and resistance at Rs 70,100.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher near $1811/oz after a 0.3?cline yesterday. Gold inched up gaining support from virus concerns, Chinas monetary easing measures, ECBs shift in inflation strategy and uneven recovery.
However, weighing on price is continuing ETF outflows and recovery in bond yields from recent lows. Gold may witness choppy trade as Fed's monetary policy is assessed however with price holding above $1800/oz, the momentum looks positive.