Gold, Silver Prices Rise; Yellow Metal Trades Above Rs 51,000

Gold and silver futures rose on Monday, taking cues from the international spot rates.

Gold, Silver Prices Rise; Yellow Metal Trades Above Rs 51,000

Domestic spot gold with a purity of 24 carats opened at Rs 51,167 per 10 grams.

New Delhi:

Gold and silver futures rose on Monday, taking cues from the international spot rates. On the Multi Commodity Exchange (MCX), gold futures, due for an August 5 delivery, were last seen 0.13 per cent up at Rs 51,035, compared to the previous close of Rs 50,970. Silver futures, due for a July 5 delivery, were last seen 1.29 per cent higher at Rs 62,465 against the previous close of Rs 61,669.

Domestic spot gold with a purity of 24 carats opened at Rs 51,167 per 10 grams today, and silver at Rs 62,471 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 edged higher today amid a slight pullback in the U.S. dollar and Treasury yields. Spot gold was up 0.2 per cent at $1,854.83 per ounce, while U.S. gold futures rose 0.4 per cent to $1,857.60.

Although, bullion's outlook remained vulnerable to aggressive interest rate hikes by major central banks.

A weaker dollar and lower U.S. 10-year Treasury yields make bullion more attractive for buyers. Gold is considered an inflation hedge, higher interest rates lift the opportunity cost of holding zero-yield bullion.

Analyst View:

Ravi Singh, Vice-President and Head of Research, ShareIndia: "This week gold may witness volatility on account of key data and events which may trigger the price momentum viz. ECB meeting, U.S. inflation data and RBI MPC meeting. Movement of the dollar index and U.S. treasury yields will be the key driver of gold prices."

He suggested, "Buy Zone above - Rs 51,100 for the target of Rs 51,400. Sell Zone below - Rs 50,800 for the target of Rs 50,500."

Amit Khare, AVP - Research Commodities, Ganganagar Commodity Ltd: "As per the technical chart, gold and silver are making bottom. We can see a good upside movement 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: August Gold closing price Rs 50,970, Support 1 - Rs 50,900, Support 2 - Rs 50,700,  Resistance 1 - Rs 51,100, Resistance 2 - Rs 51,300. July Silver closing price Rs 61,669, Support 1 - Rs 61,500, Support 2 - Rs 60,900, Resistance 1 - Rs 62,400, Resistance 2 - Rs 63,000."

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