The price of gold in India rose on Wednesday. On the Multi Commodity Exchange (MCX), the gold contract in October jumped by Rs 47,378 on 10 grams to close at 0905 on August 18. This was the highest price of gold in a week. Silver also rose on Wednesday after the yellow metal. The futures of the precious metal jumped 0.35 per cent to Rs 63,447 in August.
Gold prices remained stable in the international market on Wednesday. Spot gold was flat at $1,785.66 an ounce as of 0103 GMT. US gold futures were flat at $1,787.20. The dollar hit a nine-month high against the euro on Wednesday. A higher dollar means that safe-haven assets will become costlier to other currencies. Silver rose 0.1% to $23.65 an ounce. Higher dollar price and spurt in Covid-19 cases driven by delta variant kept the yellow metal’s price flat in early trade on Wednesday. All eyes are now on the minutes at the Fed’s July meeting for any guidance on taper plans.
“International spot and futures gold and silver prices have turned flat this morning in Asian trade ahead of the release of FOMC meeting minutes tonight. Technically, LBMA Gold is trading near the 21-daily moving average level above the $1789 level, which will continue its uptrend to the $1802-$1821 level. Support is at the $1783-$1771 level. LBMA Silver could see a move above the $23.00 level at $24.10-$25.22. Support lies at $23.40-$22.65 levels,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
“Domestic gold and silver prices and bullion index futures may open flat on Wednesday morning, tracking overseas prices. On the domestic front, MCX Gold may witness a rally up to Rs 47,450-47,600 in October, with support at Rs 47,150-47,000 levels. On MCX, silver can come in the level of Rs 63,900-64,400 above Rs 63,000 in September. Support is at Rs.62,900-62,000 levels. MCXBULLDEX May can trade with gains in the range of Rs 14,100-14,350.
“The bulls in the gold market have made modest technical gains in the near term. Further concern in the market earlier this week has given some support to safe haven demand for precious metals markets. October gold futures were down $ 4.70 at $1,782.90 and September Comex silver was down by $ 0.146 to $23.645 an ounce. In the major external markets, the US dollar index is seeing strength today. Nymex crude oil futures price is low and is trading at around $ 66.70 per barrel. Meanwhile, the yield on the benchmark US 10-year Treasury note is currently fetching 1.23%,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities Ltd.
“Technically, Gold Bulls have made slight overall technical gains in the short term. The next upside price objective for the Bulls is to produce a close above solid resistance at $1,800.00. The next short term downside price objective of the Bears is to give solids to futures prices. Pushing below technical support at $1,700.00,” Khare said.
“Gold and silver are making up the bottom. We are witnessing short covering rally in Gold and Silver from last 3-4 trading sessions which may continue for next few trading sessions. The momentum indicator RSI also intervened in a strong zone according to the hourly as well as the daily chart. Hence traders are advised to create fresh long positions in Gold and Silver, traders should also keep an eye on the below mentioned important technical levels for the day: August Gold closing price at Rs 47,280, Support 1 – Rs 47,000, Support 2 – Rs 46,800, Resistance 1 – Rs 47,500, Resistance 2 – Rs 47,700. September silver closing price Rs 63,226, Support 1 – Rs 62,700, Support 2 – Rs 62,000, Resistance Rs 1 – 63,700, Resistance 2 – Rs 64,200.
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