Gold prices edged lower on Friday for the third consecutive day following a muted trend in international spot prices. On the Multi-Commodity Exchange (MCX), gold futures dipped 0.30% to Rs 48,435 for 10 grams at 9.30 am. July silver future was trading 0.37% lower to Rs 71,455 for a kilogram.
In the international market, gold prices were flat on Friday, as an uptick in the dollar and US Treasury yields pressured bullion. Spot gold was down 0.2% at $1,893.07 per ounce by 0308 GMT. Bullion has risen 0.7% so far this week, and was on track for its fourth straight weekly gain. US gold futures eased 0.1% to $1,896.20.
“International spot gold and silver prices have started marginally weaker this Friday morning in Asian trade. The PCE is the Federal Reserve’s favoured inflation tracker will be released tonight. According to a poll, May PCE is expected to have expanded by 2.9% versus a 1.8% growth for April. Technically, LBMA Gold Spot has bounced back from $1888 level where breakout above $1900 could see a bullish momentum up to $1914-$1923 levels. Support is at $1885-$1874 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Technically, LBMA Silver holds a hurdle near $28.30 level below which could see sideways momentum. However, a strong breakout could take prices up to $28.66-$29.20 levels. Support is at $26.95 $26.30 levels,” he further added.
“Domestic gold and silver prices could start weaker this Friday morning tracking overseas prices. Technically, MCX Gold June could trade on sideways to marginal upside momentum up to Rs 48,700-48,900 levels. Support is at RS 48,500-48,350 levels. Technically, MCX Silver July if sustain above Rs 71,000 level can take prices up to Rs 71,900-72,700 levels. Support is at Rs 70,800-70,000 levels,” analyst mentioned.
“Technically gold and silver both forming higher highs and higher lows formation in daily chart so positive trend is intact, traders are advise to go long in small dips today and focus some important technical levels given below for the day: June Gold closing price Rs 48,481, Support 1 – Rs 48,300, Support 2 – Rs 48,100, Resistance 1 – Rs 48,820, Resistance 2 – Rs 49,150. July Silver closing price Rs 71,719, Support 1 – Rs 71,200, Support 2 – Rs 70,500, Resistance 1 – Rs 72,210, Resistance 2 – Rs 72,920,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited said.
“The gold is experiencing unpredictability due to the appreciation in the value of dollar as investors are anticipating that the report of US personal consumption might gauge inflationary pressure, GDP of the United States along with data of jobless claims data all due later today. The safe-haven demand will remain complete and undamaged. However, any upbeat data point might release upward pressure on the dollar. Consequently if MCX gold cracks the crucial support of Rs 48,600, we might witness a fall towards Rs 47,900 whereas Rs 50,000 will be acting as a crucial resistance,” said Amit Gupta, managing director, SAG Infotech.
“While prices stay above $1880 it may extend positive momentum for the day. A direct drop below $1845 is an immediate downside reversal point. For MCX June, important resistance of Rs 49480 needs to be cleared for continuation of upticks. Or else, there are chances of corrective selling pressure. Anyhow, major support is placed at Rs 46,920,” Hareesh V, research head commodities at Geojit Financial Services.