gold price in future India There was a lot of momentum on Tuesday. On the Multi Commodity Exchange, gold futures ended 0.22 per cent higher at Rs 50,753 per 10 grams. However, silver prices declined on Tuesday following global cues. The precious metal futures fell 0.79 per cent to Rs 56,478 per kg.
In the international market, gold prices hit a nine-month low as the US dollar rose to its highest level in 20 years. Spot gold was down 0.1 per cent at $1,732.17 an ounce by 0050 GMT, while US gold futures were down 0.1 per cent at $1,730.80. The dollar jumped to a new 20-year high on Monday. The rising dollar has made the safe-haven metal more expensive for buyers of other currencies.
Traders will be looking forward to the US Consumer Price Index data set for Wednesday. Economists expect consumer prices to rise 8.8 percent in June from a year earlier, the highest in 40 years, according to a Bloomberg survey.
To control rising inflation, the United States Federal Reserve may raise interest rates faster than other central banks. Expectations of aggressive rate hikes propelled the dollar to new highs in decades in the previous session.
The benchmark US 10-year Treasury yield held steady after falling on Monday.
“International spot and COMEX gold and silver prices started marginally stronger in Asian trade on Tuesday morning as benchmark bond yields extended losses but moved higher as the dollar continued to weigh on bullion demand. Shadowed above. Some support may come to keep an eye on the weakness in the equity markets. Today’s Comex August gold is $1720.57-$1748.57, said Sriram Iyer, Senior Research Analyst, Reliance Securities.
“Looking at the overseas markets, domestic gold futures may strengthen marginally from flat on Tuesday morning. A weak rupee can cap the downside.
Today’s MCX August Gold range is Rs 50,550-50,805.
Sandeep Sawant Desai, Research Associate – Base Metals Sachs, Angel One Limited said, “We expect gold to trade lower at Rs 50,200, breaking which may take the price to a low of Rs 49,780.”
“Gold prices hit 9-month lows and silver prices also hit nearly 2-year lows. The prospects of an aggressive rate hike by the US Federal Reserve and a strengthening dollar index weighed on the precious metals. There will be ups and downs in bullion in today’s session. Gold has support at $1720-1708, while resistance lies at $1740-1751. In rupee terms, gold has support at Rs 50,350-50,120, while resistance lies at Rs 50,860-51,040.
“Today’s range for Comex September silver is $18.857-$19.447. Today’s range of silver on MCX is September 56,775-57,440.’ Kalantri said, ‘Silver has support at Rs 56,350-55,750, while resistance is at Rs 57,480-57,810.