Gold prices in India rose on Wednesday. On the Multi-Commodity Exchange (MCX), August gold contracts increased 0.35 per cent higher to Rs 47,852 for 10 grams at 1250 hours on July 7. September silver futures were trading 0.69 per cent higher at Rs 69,990 a kilogram.
In the international market, gold prices held firm near the key $1,800/ounce on Wednesday, helped by a drop in US. Spot gold was up 0.1% at $1,797.84 per ounce, as of 0500 GMT, Reuters said. US gold futures rose 0.3% to $1,799 per ounce.
“International spot gold and silver prices have started flat this Wednesday morning in Asian trade ahead of minutes of the Fed’s latest meeting due to be published tonight. Technically, LBMA Gold holds a resistance zone near $1810-$1820 levels. Support is at $1790-$1781 levels. LBMA Silver holds a 200-Daily Moving Average resistance at $26.40 level and above which will continue its Bullish momentum up to $26.55-$27.10 levels. Support is at $25.90-$25.40 levels,” Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver prices could start flat this Wednesday morning, tracking overseas prices. On the domestic front, MCX Gold August holds a strong support near Rs 47,650-47,400 levels. Resistance is at Rs 47,800-48,000 levels. MCX Silver September holds a resistance 50-DMA near Rs 70,480 levels and above which could see a bullish momentum up to Rs 71,200-72,100 levels. Support is at Rs 68,800-67,900 levels,” Iyer said.
“Gold prices hovers around three week high after breaching the $1800 level in the previous session, amidst volatility in dollar as market awaits the release of minutes from the US Federal Reserve’s June policy meeting. The U.S. 10Y fell to below the 1.4 mark, lowest in more than four months, supporting gold prices. Worries regarding the rise in cases of Covid and it’s variants after many countries have eased their lockdown restrictions, are also lending support to the metal prices. US services industry activity grew at a moderate pace in June, likely restrained by labor and raw material shortages, resulting in unfinished work continuing to pile up. All eyes are on minutes from the Fed’s latest meeting, due at, that is expected to shed more light on interest rate trajectory after a hawkish tilt from the US central bank last month. Broader range on COMEX could be between $1788- 1815 and on the domestic front prices could hover in the range of Rs 47,500- 48,150,” said Navneet Damani, VP – commodities research, Motilal Oswal Financial Services.
“Precious metal seems to be in the process of switching its direction as after three-weeks of sideways consolidation it crossed $1800 level yesterday though could not close above it. US bond yields held near a two-week low while investors are watching for the Federal Reserve’s minutes to gauge the outlook for US interest rates,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold on MCX also made a stellar move and touched Rs 48,000 mark and closed well above Rs 47,500 levels. It seems that prices have entered in the accumulation zone for the gold and any dip should be a buying opportunity until it breaches and close below Rs 46,500 level. Key level for Gold August contract –Rs 47,678. Buy zone above – Rs 47,700 for the target of Rs 48,000-48,300. Sell zone below – Rs 47,650 for the target of Rs 47,3560-47,028,” Matta said.
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