Gold was trading higher in the Indian markets on August 4, tracking a positive trend in international spot prices on a subdued dollar.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.14 percent higher at Rs 47,932 for 10 grams at 0930 hours. September silver futures were trading 0.32 percent higher at Rs 68,132 a kilogram.
Both the precious metals settled mixed in the international markets the previous day. December gold futures contract settled at $1,814.10 a troy ounce and September silver futures settled at $25.58 a troy ounce. Both metals ended a mixed in the domestic market as well.
Gold showed some weakness despite benchmark 10-year bond yields dropping to multi-month lows and the dollar index slipping from its recent highs. Silver prices were stable.
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Investors are waiting for Fridays US non-farm employment data to better understand the economic recovery from the pandemic in the backdrop of highly transmissible Delta plus variants, Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.
We expect both precious metals to remain volatile in Wednesdays session ahead of the US non-farm data but hold key support levels of $1,800 and $25 per troy ounce, respectively, he said.
At MCX, gold has support at Rs 47,660-47,500 and resistance at 48,000-48,155. Silver has support at 67,500-67,100 and resistance at 68,200-68,600 levels. We suggest buying in gold around 47,800 with a stop loss of 47,580 for the target of 48,200, Jain said.
Expert: Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities
COMEX gold trades marginally higher near $1,816 after slipping 0.4 percent on August 3. Gold has continued to trade in a range above $1,800 amid choppiness in equities and the dollar and uncertainty ahead of the US jobs report.
However, rising virus cases, concerns about the Chinese economy and uneven recovery have supported the price. ETF outflows, however, show weaker investor interest.
Gold may remain choppy along with equities but concerns about China and the virus may support the metal.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and silver are giving some positive signals on the daily chart. The momentum indicator RSI is also indicating the same on the hourly chart.
Traders are advised to create fresh long positions near given support levels, and should also focus on important technical levels given below for the day:
August Gold closing price: Rs 47,864 | Support 1 47,800 | Support 2: 47,600 | Resistance 1: 48,000 | Resistance 2: 48,200.
September Silver closing price: Rs 67,914 | Support 1: 67,450 | Support 2: 67,000 | Resistance 1: 68,350 | Resistance 2: 69,000.
Sriram Iyer, Senior Research Analyst, Reliance Securities
International spot and futures gold prices edged lower on August 3, as traders stayed on the sidelines ahead of the US jobs data due later this week that could influence the timeline of the Federal Reserves cuts back on the asset purchase programme.
Domestic gold ended weaker, while silver prices ended with marginal gains, tracking overseas prices.
The bullion index ended marginally weaker, tracking weak domestic gold prices. Domestic gold and silver prices could start in the green on August 4, tracking overseas prices.
On the domestic front, MCX October gold is holding resistance near 48,000, a slip can take prices to 47,800-47,600. Resistance is at 48,100-48,250.
MCX September silver holds a resistance 68,200-69,000 levels. Support is at 67,100-66,700.