Gold, Silver Prices Climb; Yellow Metal Trading Above Rs 51,050

Gold and silver futures surged on Monday, taking cues from the international spot rates. On the Multi Commodity Exchange (MCX), gold futures, due for a June 3 delivery, were last seen 0.49 per cent up at Rs 51,076, compared to the previous close of Rs 50,829. Silver futures, due for a July 5 delivery, were last seen 1.32 per cent higher at Rs 62,215 against the previous close of Rs 61,407.

Domestic spot gold with a purity of 24 carats opened at Rs 51,248 per 10 grams today, and silver at Rs 61,759 per kilogram - both rates excluding GST (goods and services tax), according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Foreign Exchange Rates:

Globally, gold prices climbed today, benefiting from a sliding dollar. Although, higher U.S. Treasury yields capped gains in greenback-priced bullion. Spot gold rose 0.6 per cent to $1,856.14 per ounce. U.S. gold futures gained 0.7 per cent to $1,855.60.

A weaker dollar makes bullion more attractive for overseas buyers.

Analyst View:

Ravi Singh, Vice-President and Head of Research, ShareIndia: "U.S. housing, labour, and regional manufacturing indices data this week failed to meet market expectations putting pressure on the dollar index and Treasury yields. Central banks across the globe are under pressure to act to get inflation under control. Gold prices have rebounded from lows to gain some strength."

He suggested, "Buy Zone near - Rs 50,700 for the target of Rs 51,000. Sell Zone below - Rs 50,500 for the target of Rs 50,300."

Amit Khare, AVP - Research Commodities, Ganganagar Commodity Ltd: "As per the technical chart, gold and silver are making a bottom. We can see a huge short-covering rally in the coming future. Momentum indicator RSI also cited the same in hourly as well as the daily chart. So traders are advised to create fresh buy positions near given support levels. They should focus important technical levels given for the day: June Gold closing price Rs 50,829, Support 1 - Rs 50,700, Support 2 - Rs 50,500,  Resistance 1 - Rs 51,000, Resistance 2 - Rs 51,250. July Silver closing price Rs 61,407, Support 1 - Rs 61,000, Support 2 - Rs 60,600, Resistance 1 - Rs 62,000, Resistance 2 - Rs 62,500."