The price of gold falls for the second day in a row; Lucrative option for investors, says expert
Gold prices in the Indian market remained under pressure on Friday, following global trends. On Multi Commodity Exchange (MCX), June gold futures fell 0.25% to Rs 48,423 for 10 grams at 9:30 am. Silver continued to plunge for the third day in a row. On MCX, silver futures fell 0.7% to Rs 71,800 per kilogram.
In the international market, gold slipped on Friday. Spot gold was down 0.3% to $ 1,871.50 an ounce at 0253 GMT, but was up 1.6% this week. US gold futures fell 0.6% to $ 1,871. The dollar was heading for a weekly loss, as benchmark 10-year Treasury yields plunged.
“International spot gold and silver prices started to stagnate or slightly lower on Friday morning in Asian trade. US bond yields and the greenback started to weaken on Friday morning in Asian trade and could limit the decline, ”said Sriram Iyer, senior research analyst at Reliance Securities.
“Technically, the LBMA Gold Spot will continue its bullish note near the $ 1870 levels where more could see the $ 1885-1894 levels. Support is at the $ 1863 to $ 1855 levels. LBMA Silver holds well above the $ 27.00 level could trade on bullish momentum to levels of $ 28.20 to $ 28.90. Support is at the levels of $ 27.25 to $ 26.77.
“Domestic gold and silver prices could start to stagnate, if not slightly higher, following prices abroad. Technically, if MCX Gold June breaks above Rs 48,400, we could see a push up to Rs 48,800-49,100 levels. Support is at the levels of Rs 48,350-48,150. MCX Silver July gave a breakout of Rs 72,000 which could take prices to levels of Rs 73,200 to 74,000. Support is at levels of Rs 71,500 to 70,400, “Iyer added.
“Based on gold futures, the most active June 2021 Comex contract is currently pegged at $ 1,877.40 out of $ 4.10. Gold traded at a high of $ 1,885.30 on Friday, which is lower than Thursday’s high. However, it traded at a low of $ 1,864.20 from yesterday’s trading range. More importantly, gold now, for the fourth day in a row, has remained above a key and critical support level, which is a price range between $ 1,843.70 (the 61.8% retracement Fibonacci) and $ 1,851.70, which is a current fixed on the 200-day movement. average, ”said Amit Khare, AVP-Commodity Research, Ganganagar Commodities Limited.
The minutes of last month’s Federal Open Market Committee meeting created volatile swings in gold futures prices, leading to a low yesterday just to the 200-day moving average. Gold was able to recover quite well, however, as it stood at around $ 1,881, he added.
“We saw profit bookings in both precious metals on Thursday which may continue. Traders are advised to go short on the upside and also focus on the important technical levels shown below: Gold June closing price 48,544 Rs, Support 1 – Rs 48,300, Support 2 – Rs 48 000, Resistance 1 – Rs 48,770, Resistance 2 – Rs 49,100. July Silver closing price Rs 72,304, Support 1 – Rs 71,700, Support 2 – Rs 70,800, Resistance 1 – Rs 73,000, Resistance 2 – Rs 73,700, ”Khare added.
“At present, India has a fair share of the price of gold with an overall lowered rate, making it a lucrative option for investment. However, if we talk about international rates, it has been flat with a higher rating due to the strength of the dollar and bonds, ”said Amit Gupta, Managing Director of SAG Infotech.
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