Gold August futures contracts at MCX opened flat on Tuesday at Rs 71,689 per 10 gram, up 0.05% or Rs 35 while silver September futures contracts were trading at Rs 89,867/kg, up by 0.13% or Rs 117.
On Monday, gold and silver settled on a flat note in the international and domestic markets. Gold August futures contract settled at Rs 71,654 per 10 grams with a loss of 0.01% and September silver futures contract settled at Rs 89,750 per kilogram with a gain of 0.23%.
Gold and silver traded steady in the international markets ahead of the U.S. Fed Chairman’s speech and FOMC meeting minutes. The U.S. ISM manufacturing PMI and construction spending data released on Monday was lower than expected and supported safe-haven demand of precious metals.
Crude oil prices also gained amid geo-political tensions and also supporting prices of gold. However, strong dollar and strength in the U.S. bond yields are limiting gains of gold and silver.
Today, the US Dollar Index, DXY, was hovering near the 105.89 mark, falling 0.02 or 0.01%.“The Fed Chairman Jerome Powell’s speech at a European Central Bank forum in Portugal, along with ECB President Lagarde, on Wednesday will be directional for bullion markets. We expect gold and silver prices to remain volatile this week ahead of the key U.S. data and volatility in the dollar index,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Intraday ranges by Manoj Kumar Jain:
- At MCX, gold is having support at 71,450-71,220 and resistance at 71,800-72,040
- MCX silver has support at 89,250-88,800 and resistance at 90,300-90,850
“We suggest buying gold on dips around 71,450 with a stop loss of 71,220 for the target of 71,850,” added Jain.