Gold prices in India rose on Tuesday after facing a fall in the previous session. On the Multi Commodity Exchange (MCX), the gold contract in August rose by 0.18 per cent to Rs 47,860 per 10 grams at 0905 on July 13. Another precious metal silver also saw a jump in the domestic market. September silver futures rose by Rs 0.30 to Rs 69,582 per kg.
Gold prices rose on Tuesday after hitting a one-week low on the previous day in the international market. Spot gold rose 0.1 per cent to $1,807.22 an ounce, according to Reuters. US gold futures rose 0.1 per cent to $1,808.1, the agency said. Investors are eagerly awaiting US inflation data that could hit the Federal Reserve’s deadline for easing bond purchases.
The dollar index had fallen 0.1 per cent on July 13.
The weakening of the dollar and the rise in international gold prices on Tuesday made the yellow metal costlier for home buyers. Gold purchases in the country have been affected due to the coronavirus pandemic in the last one year. The nationwide virus outbreak has eroded the spending power of the Indian middle class. According to the World Gold Council, in 2020, gold sales fell to their lowest in two decades. However, experts believe that if the price of gold remains low, then this year the demand may pick up.
“International spot gold and silver prices have opened flat on Tuesday morning in Asian trade ahead of US CPI data tonight. Technically, LBMA Gold is likely to trade with a minor upside momentum with support at the $1799-$1787 level. Resistance is at the $1813-$1822 level. LBMA Silver is trading near the 200-daily SMA level, which is going to continue its bearish trend and could see further downside near the $25.80-$25.30 level. Sriram Iyer, Senior Research Analyst, Reliance Securities said, resistance lies at the $26.50-$26.90 level.
“Keeping an eye on overseas prices, domestic gold and silver prices may start flat this Tuesday morning. On the domestic front, MCX Gold is holding strong support near Rs 47,600-47,400. Resistance is located at Rs 47,900-48,100 level. On MCX, silver can see bearish momentum below the level of Rs 69,500 in September till the level of Rs 68,900-68,000. Resistance lies at Rs 70,100-71,000 level.”
“Gold continues to tread a fine line between rates and inflation threats, managing to stay above the $1800 per ounce level over the past few days. Gold has an annual average of $1,830, while the 100 DEMA is at $1788. This will be the key range where gold prices would like to spend the next few days.Sandeep Matta, Founder, Tradit Investment Advisor, said the US equity benchmark market and rising currency is also weighing down the precious metal’s momentum.
“Gold on MCX was also trading on expected lines yesterday and this has given an opportunity to accumulate gold around pivot levels. Technically bulls have slight near term advantage though for gold to pass and sustain. Today Rs 48,000 will be a key resistance. Gold August contract level – Rs 47,707. Buy area above – Rs 47,707 target Rs 47,937-48,090. Sell area below – Rs 47,700 target Rs 47,590-47,485 ,” Matta advised.
“Technically, gold bulls have a slight technical advantage in the near term. The next upside price objective for the bulls is to build above solid resistance at $1,850.00. The next short term downside price objective for the bears is to propel futures prices to June Lower level is pushing below solid technical support at $1,750.10. Resistance is first seen at today’s high of $1,814.00 and then July high at $1,819.50. Support earlier today is Amit Khare, AVP – Research Commodities, Ganganagar Commodities Ltd. The low of $1,791.00 and then last week’s low of $1,784.70 is being seen.
For the last two trading sessions, gold is showing more weakness than silver. The momentum indicator RSI is indicating some profit booking signals in the daily chart. Therefore traders are advised to take short positions near the bullion at the given resistance levels. Traders should also pay attention to the below mentioned important technical levels for the day: August Gold closing price at Rs 47,774, Support 1 – Rs 47,500, Support 2 – Rs 47,200, Resistance 1 – Rs 48,000, Resistance 2 – Rs 48,225. September silver closing price Rs 69,375, Support 1 – Rs 68,800, Support 2 – Rs 68,100, Resistance 1 – Rs 70,000, Resistance 2 – Rs 70,610.
read all Breaking News, today’s fresh news and coronavirus news Here
.