Gold price increased marginally in the domestic market on Friday. On Multi Commodity Exchange (MCX), June gold futures were up 0.16% to Rs 49,278 for 10 gram at 10 am on June 11. Silver also saw a jump on Friday. On MCX, silver July futures were trading higher by 0.47% to Rs 72,339 a kilogram.
In the international market Gold prices edged above $1,900 per ounce level on Friday, supported by a pullback in the dollar and lower bond yields. Spot gold was up 0.1% at $1,900.51 per ounce, as of 0313 GMT. Prices have risen more than 0.5% this week. US gold futures rose 0.3% to $1,902.90 per ounce, according to Reuters. The dollar index, meanwhile, fell 0.1% after hitting a near one-week high in the previous session.
“International spot gold and silver prices rebounded from the lows of the session to end higher on Thursday after data showed US consumer prices increased more than expected last month but eased fears over the Federal Reserve tapering its monetary support. The consumer price index increased 0.6% last month after surging 0.8% in April, which was the largest gain since June, while the core CPI shot up 3.8% in the 12 months through May, the largest increase since June 1992,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
“On the ECB front, the central kept rates unchanged but said it would continue to run its emergency bond purchases at a higher pace than at the beginning of the year, fearing that any retreat could sharply raise borrowing costs and slow down a long-delayed recovery,” Iyer added.
“International spot gold prices are hovering near the key $1,900 per ounce level on Friday morning in Asian trade, helped by a weaker dollar and U.S. bond yields. Investors hope that the Federal Reserve would not change its dovish stance despite a rise in US inflation. Technically, LBMA Gold Spot could trade on bullish note within the range of $1890-$1912 levels. LBMA Silver could trade in a range of $27.20-$28.65 levels,” he further mentioned.
“On the domestic front, MCX Gold August is trading above Rs 49,200 levels where further could take Rs 49,350-49,500 levels. Support is at Rs 49,050-48,900 levels. MCX Silver July holds a support near Rs 71,600-70,800 levels. Resistance is at Rs 72,400-73,100 levels,” Iyer mentioned.
“Gold and Silver both are ready for some upside movement as per daily technical chart. So traders are advise to go long in small dips and traders should also focus some important technical levels given below for the day: August Gold closing price Rs 49,198, Support 1 – Rs 48,850, Support 2 – Rs 48,550, Resistance 1 – Rs 49,550, Resistance 2 – Rs 50,000. July silver closing price Rs 71,999 Support 1 – Rs 71,200, Support 2 – Rs 70,500, Resistance 1 – Rs 72,700, Resistance 2 – Rs 73,700,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
” The global gold prices despite higher CPI & inflation data in US has bounced off their session low clearly shows the investors are confident that Federal Reserve will not be in a hurry to tighten interest rates anytime soon. Fundamentally the higher inflation data is negative for gold as it indicates that Fed needs to tighten its monetary policy however market is anticipating that it will not change the Fed’s view of keeping rates low as the inflation numbers are not out of the range,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold on MCX has traded within our suggested range of Rs 48,700-49,275, focus will now be on the Fed’s monetary policy for more clues about the central bank’s stance on tapering its massive stimulus. Key level for Gold August contract – Rs 49,045. Buy Zone Above – Rs 49,033 for the target of Rs 49,400-49,600. Sell Zone Below – Rs 48,975 for the target of Rs 48,830-48,680,” he mentioned.