Gold prices in India were trading flat on Monday. On the Multi-Commodity Exchange (MCX), August gold contracts rose 0.07 per cent higher to Rs 47,317 for 10 grams at 1650 hours. Silver also marginally rose on Monday. September silver futures were trading 0.13 per cent higher at Rs 70,278 a kilogram.
In the international marker, gold prices edged lower on Monday, weighed down by a slight uptick in the dollar. Spot gold was down 0.1% to $1,785.41 per ounce by 0037 GMT, according to Reuters. US gold futures rose 0.1% to $1,785.20. The dollar ticked up 0.1% against its rivals, making gold expensive for holders of other currencies.
“Gold prices edged higher amidst a fall in dollar and rising fears regarding Covid variants. A stronger than expected US non-farm payroll was reported strengthening the optimism regarding economic recovery although unemployment rate on other hand rose to 5.9% against expectations of 5.6% . Japan’s service sector activity shrank for the 17th straight month in June as the coronavirus dampened demand at home and abroad. Focus today will be on the service PMI data expected from major economies,” said Navneet Damani, VP – commodities research, Motilal Oswal Financial Services.
“Gold in India last week was being sold at a premium for the first time in more than two months as demand gained traction after curbs to combat the second wave of the coronavirus were slightly relaxed. Broader range on COMEX could be between $1776- 1803 and on the domestic front prices could hover in the range of Rs 47,200- 47,600,” Damani added.
“After the release of US employment data where more jobs were added than expected in June, Gold prices first time post the recent FOMC outcome have shown some bullishness however could not cross the important resistance level of $1800 an ounce. Market participants are expecting a relatively less hawkish tilt in upcoming fed’s June monetary policy meeting minutes which may help yellow metal to surge,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold on MCX also regains its shine on Friday and trading comfortably in the buying zone. The operating biases are bullish for the gold and could be the right pitch for the up move. Key level for gold August Contract – Rs 47,313. Buy zone above – Rs 46,320 for the target of Rs 47,487-47,689. Sell zone below – Rs 46,750 for the target of Rs 47,111-46,937,” he added.
“International spot gold and silver prices have started flat to marginally higher this Monday morning in Asian trade. However, COMEX is shut today for Independence Day Holiday. The highlight this week will be on the Federal Reserve’s policy committee minutes from its June meeting. G20 finance ministers and central bank governors will convene in Venice starting Friday for a summit. Meanwhile, the economic calendar is thin this week with only ISM Non-Manufacturing PMI for the month of June and jobless claims for week ending June 28 from the US side of things,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Across the Atlantic, UK June PMI and GDP data and Germany’s ZEW Economic Sentiment for July could have a small impact on prices. Technically, LBMA Gold above $1780 level will continue its bullish momentum up to $1797-$1808 levels. Support is at $1777-$1760 levels. LBMA Silver has bounced back from 200-Daily Moving Average which is placed at $25.70 level above which will continue its Bullish momentum & further could see $26.55-$27.40 levels. Support is at $25.80-$24.60 levels,” Iyer added.
“Domestic gold and silver prices could start to marginally higher this Monday morning, tracking overseas prices. On the domestic front, MCX Gold August holds a strong support near Rs 47,150-47,000 levels. Resistance is at Rs 47,400-47,700 levels. MCX Silver September above Rs 68,700 levels will continue its Bullish momentum up to Rs 70,300-71,400 levels. Support is at Rs 68,600-67,300 levels,” he added.
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