Gold price in India continued to drop on Friday. On the Multi-Commodity Exchange (MCX), August gold contracts slumped 0.12 per cent to Rs 47,576 for 10 grams at 1420 hours on July 23. Yellow metal prices dropped for the third time this week amid weak global cues. Silver also dropped on Thursday. The precious metal’s September future tanked 0.04 per cent to Rs 67,347 a kilogram on July 23.
“International gold and silver prices have started marginally in the red this Friday morning in Asian trade. Today PMI numbers could move the markets; however, investors will await cues from the US Federal reserve meeting next week. The Fed’s policy meeting next week follows comments from Chair Jerome Powell which suggested that the central bank would remain accommodative despite recent spikes in inflation readings. Technically, LBMA Gold has bounced back from $1790 level could see sideways to marginal downside momentum. Support is at $1795-$1780 levels. Resistance is at $1811-$1817 levels. Technically, LBMA Silver holds a 21-Daily Moving Average near $26.00 level below which could take prices $25.00-$24.70 levels. Resistance is at $25.40-$25.70 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver prices could start marginally in the red this Friday morning, tracking overseas markets. Technically, MCX Gold August took a support of Rs 47,500 levels where it closed above it indicating for sideways momentum within the range of Rs 47,800-47,400 levels in coming session. Technically, MCX Silver September below Rs 68,000 could see Rs 66,800-66,000 levels. Resistance is at Rs 67,700-68,400 levels,” he added.
“US jobless claims report showed a decline of 51,000 in claims, to 419,000, which was still higher than the 350,000 in new claims expected. The report falls into the camp of the US monetary policy doves who want to see the Federal Reserve hold off on tightening policy. The key outside markets today see the US dollar index firmer after hitting a 3.5-month high on Wednesday. Nymex crude oil futures prices are firmer and trading around $71.30 a barrel. Oil prices have made a very good recovery this week after falling to a five-week low on Monday. The yield on the US. Treasury 10-year note is presently fetching 1.29%,” said Amit khare, AVP— Research Commodities, Ganganagar Commodities.
“Gold and silver are giving some positive signal on the daily chart, momentum indicator RSI also indicating the same. Silver is looking more strong than Gold in daily chart and creating a positive divergence in daily chart, So traders are advise create long position in gold and silver near support levels, traders should also focus important technical levels given below for the day: August Gold closing price Rs 47,634, Support 1 – Rs 47,400, Support 2 – Rs 47,200, Resistance 1 – Rs 47,850, Resistance 2 – Rs 48,060. September silver closing price Rs 67,374, Support 1 – Rs 66800, Support 2 – Rs 66,100, Resistance 1 – Rs 67,900, Resistance 2 – Rs 68,600,” he added.