Gold and silver futures rose on Monday, rebounding from recent lows. On the Multi Commodity Exchange (MCX), gold futures, due for a June 3 delivery, were last seen 0.44 per cent up at Rs 50,090, compared to the previous close of Rs 49,873. Silver futures, due for a July 5 delivery, were last seen 0.67 per cent higher at Rs 59,731 against the previous close of Rs 59,332.
Domestic spot gold with a purity of 24 carats opened at Rs 50,465 per 10 grams today, and silver at Rs 59,106 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:
Gold prices edged down in choppy trading as a strong U.S. dollar hurt demand for the greenback-priced metal and set it on course for a more than three-month trough hit in the previous session.
Spot gold was down 0.1 per cent at $1,808.61 per ounce. U.S. gold futures dipped 0.2 per cent to $1,804.80.
Concerns around global growth helped the dollar start the week just off a 20-year high against its peers, making safe-haven gold less attractive for buyers holding other currencies.
Although seen as an inflation hedge, gold is sensitive to rising U.S. short-term interest rates and bond yields, which raise the opportunity cost of holding bullion.
Ravi Singh, Vice-President and Head of Research, ShareIndia: "Gold may witness some more correction to trade near the levels of Rs 49,500 in coming weeks. Higher inflation and geopolitical volatility are supporting gold prices, however, various physical tightening measures by central banks to curb inflation and stronger dollar are pushing gold to lower levels. Investors may go long in gold around Rs 49,500 - Rs 50,000 levels for long term gains.
He suggested, "Buy Zone above - Rs 50,100 for the target of Rs 50,400. Sell Zone below - Rs 49,800 for the target of Rs 49,500."
Amit Khare, AVP - Research Commodities, Ganganagar Commodity Ltd: "As per technical chart, gold and silver are trading at highly oversold zone. Anytime we can see a huge short covering rally. Momentum indicator RSI also cited the same in hourly as well as 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 49,873, Support 1 - Rs 49,800, Support 2 - Rs 49,500, Resistance 1 - Rs 50,050, Resistance 2 - Rs 50,200. July Silver closing price Rs 59,332, Support 1 - Rs 59,000, Support 2 - Rs 58,500, Resistance 1 - Rs 60,100, Resistance 2 - Rs 61,000."