Gold prices were little changed in the domestic futures market in early trade on June 25, mirroring trends of the global markets.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading with a nominal gain of 0.02 percent at Rs 46,880 for 10 grams at 0950 hours. July silver futures were trading 0.19 percent higher at Rs 67,865 a kilogram.
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In the previous session, gold and silver prices failed to sustain at higher levels due to risk aversion in global markets.
Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, expects both the precious metals to remain volatile and they could face steep resistance at higher levels.
Gold is having support at $1,764-1,750 per troy ounce and resistance at $1,788-1,800 per troy ounce; silver is having support at $25.80-25.55 per troy ounce and resistance at $26.40-26.70 per troy ounce,” he said.
“At MCX, gold is having support at Rs 46,660-46,500 and resistance at Rs 47,055-47,280; silver is having support at Rs 67,200-66,800 and resistance at Rs 68,200-68,500 levels. We suggest selling in gold on the rise around Rs 47,055 with a stop loss of Rs 47,300 for the target of Rs 46,550,” Jain said.
Technical indicators
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
LBMA Gold Spot is intact in a narrow range where it’s holding support near $1,771-$1,762 levels. Resistance is at $1,779-$1,785 levels.
LBMA Silver is trading above the $26 level where further could see $26.30-$27.50 levels. Support is at $25.50-$24.90 levels.
On the domestic front, MCX Gold August is holding support near the 100-day moving average which is placed at Rs 46,900 levels above which could see an upside move towards Rs 47,200-47,350 levels. Support is at Rs 46,800-46,600 levels.
MCX Silver July holds a support near Rs 67,000-65,900 levels. Resistance is at Rs 68,200-68,200 levels.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Gold and Silver both are trading at oversold zone. Momentum indicator RSI is also creating positive divergence on 4 hourly charts, so traders are advised to create a long position in gold and silver near support levels and traders should also focus on important technical levels given below for the day.
August Gold support 1 – Rs 46,650, support 2 – Rs 46,500 | Resistance 1 – Rs 47,100, resistance 2 – Rs 47,350.
July Silver support 1 – Rs 67,200, support 2 – Rs 66,600 | Resistance 1 – Rs 68,200, resistance 2 – Rs 68,850.
Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking
As the market reassesses Fed’s hawkishness, the trend in gold doesn’t look very promising in the near term, still, the level of $1,758 per ounce will provide a strong cushion to prices, while in the domestic markets as long as the level of Rs 46,500/10gms holds on a closing basis, it looks to entice buying interest.
As of now gold looks primed for a rebound which can extend towards Rs 47,500/10gms and then eventually Rs 48,100/10gms in the coming days.