Gold prices Jumped marginally on Monday. On the Multi-Commodity Exchange (MCX), gold futures climbed 0.14 per cent at Rs 46,794 for 10 grams at 1030 hours IST on June 21. Silver witnessed a significant drop on Monday. July silver futures were down by 0.27 per cent at Rs 67,414 a kilogram.
In the international market, gold prices gained on Monday, after posting a 6% drop last week. Spot gold climbed 0.7% to $1,775.96 per ounce by 0330 GMT, while US gold futures edged up 0.3% to $1,774.7 per ounce, according to Reuters. Meanwhile, the US dollar held near multi-month peaks against other major currencies on Monday.
“Gold prices have plunge nearing $100 after the Federal Open Market Committee (FOMC) outcome and it could take some more time for gold to work through all the selling pressure. The bullish sentiments are further challenged after comments from Federal Reserve official James Bullard that the US central bank might raise interest rates sooner than previously expected. Gold to hold $1774 level on daily closing basis to remain in bullish consolidation zone otherwise we may see $1700 very soon,” said Sandeep Matta, founder, TRADEIT investment advisor.
“Gold on MCX is also trading with negative sentiments and a risky entry point both for traders and investors. We advise to stay put for some time and wait for the levels to break either side. Key level for GOLD August contract – Rs 46,928. Buy zone above – Rs 46,935 for the target of Rs 47,187-47,300. Sell zone below – Rs 46,928 for the target of Rs 46,468-46,209,” he added.
“The US Dollar Index surged higher and ended near the 92.00 level after a two-month gap. On the data front, initial jobless claims totalled 412,000 last week, an increase of 37,000 from the previous week and higher than the 360,000 estimate,” Sriram Iyer, senior research analyst at Reliance Securities.
“A separate manufacturing report by the Philadelphia Fed was higher than expected, with inflation-related indexes at their highest levels in 40 years. SPDR Gold Trust fund said its holdings fell 0.4% to 1,041.99 tonnes on Thursday from 1,045.78 tonnes on Wednesday,” he added.
“Technically, LBMA Gold Spot could see sideways to marginal downside momentum up to $1773-$1755 levels. Resistance is at $1791-$1812 levels. LBMA Silver is below $26.50 and will continue its bearish momentum up to $25.80-$24.10 levels. Resistance is at $26.65-$26.90 levels,” he mentioned.
“The Federal Reserve unleashed considerable panic in the precious metals market. While there is still some bullish sentiment in the marketplace, some market analysts say that it could take some time for gold to work through all the selling pressure. The yellow metal is seeing its worst weekly performance since March 13, 2020, when financial markets collapsed due to the spreading COVID-19 pandemic. While the move to the downside is significant, it’s not surprising. technically, gold prices were overbought ahead of the Federal Reserve’s meeting. At the same time, the US dollar was oversold. The price action as one big corrective move from over-stretched positioning for all financial markets,” said Amit Khare, AVP — research commodities, Ganganagar Commodities Limited.
“Last week bullion’s fall was the largest fall of this year. Now gold and silver both are trading on oversold zone in daily chart, where we can see short covering rally any time. Gold and silver overall trend is still positive. So traders are advise to go long in bullion’s and traders should also focus important technical levels given below for the day: August gold closing price Rs 46,728, Support 1 – Rs 46,300, Support 2 – Rs 45,900, Resistance 1 – Rs 47,150, Resistance 2 – Rs 47,700. July Silver closing price Rs 67,598, Support 1 – Rs 66,900, Support 2 – Rs 66,200, Resistance 1 – Rs 68,300, Resistance 2 – Rs 69,000,” Khare added.
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