India Gold August futures were trading higher on Friday tracking the positive trend seen in the international spot prices as the dollar came slightly off two-decade highs.
Despite the pullback, bullion is set to post its biggest weekly drop in more than a month as the elevated greenback hit demand, said a Reuters report. Gold prices have lost about 3.7 per cent this week, data showed.
On the Multi-Commodity Exchange (MCX), the August gold contracts were trading 0.16 per cent higher at Rs 50,700 per 10 grams at 0930 hours. The September silver futures were trading 0.07 per cent lower at Rs 56,899 a kilogram.
Gold and silver remained steady in the international markets on Thursday after two days of steep fall. Both precious metals settled on a slightly positive note in the international markets.
Gold August futures contract settled at $1739.70 per troy ounce and silver September futures contract settled at $19.19 per troy ounce. Due to weakness in the rupee both precious metals settled on a positive note in the domestic markets.
“We expect gold and silver could show short coverings in the upcoming sessions and gold could test $1760 per troy ounce while silver could also test $20.00 per troy ounce levels,” Manoj Kumar Jain, Head-Commodity and Currency Research at
Finmart, said.
“At MCX, gold has support at Rs 50,440-50,280 and resistance at Rs 50,800-50,950 while silver is having support at Rs 56,500-56,100 and resistance at Rs 57,440-57,880,” he said.
Jain suggests buying gold on dips around Rs 50,500 with a stop loss of Rs 50,330 on a daily closing basis for the target of Rs 50,850 and silver around Rs 56,500 with a stop loss of Rs 55,900 on a daily closing basis for the target of 57700.
Trading Strategy:
Expert: Sriram Iyer, Senior Research Analyst at
Securities
International gold and silver prices recovered from the lows of the session to end marginally higher as the dollar rally paused. However, the upside remained capped as the benchmark bonds rose on Thursday. Domestic gold and silver futures also rebounded from the lows of the session on Thursday, tracking international prices.
Domestic gold futures prices could start flat to marginally higher on Friday morning tracking overseas markets. A slightly stronger Rupee could cap the upside.
Today’s range of MCX August gold is 50400-50900. Domestic silver futures prices could start flat to marginally higher on Friday morning tracking overseas markets.
A slightly stronger Rupee could cap the upside. Today’s range of MCX silver September 56715-57300.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)