Gold prices eased on Wednesday in international markets to a three-month low as an elevated dollar continued to pressure bullion while investors awaited monthly US inflation data which could impact the Federal Reserve's monetary policy stance. Spot gold was down 0.3% at $1,832.06 per ounce as of 0046 GMT. US gold futures fell 0.5% to $1,832.10.
At 9:32 am, gold contracts were down 0.46 percent at Rs 50,351 for 10 gram on the Multi-Commodity Exchange (MCX), while silver shed 0.52 percent at Rs 60,300 a kilogram.
Gold prices traded steady on Wednesday with spot gold prices at COMEX near $1839 per ounce in morning trade. Gold prices witnessed selloff on Tuesday as stronger dollar lowered demand for the yellow metal. The dollar index was trading near two decade highs ahead of key US inflation data. Gold prices are hovering near the support zone of $1830-1810 and we may see some accumulation near this range in the short term, said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
"We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1810 and resistance at $1850 per ounce. MCX Gold June support lies at Rs 50300 per 10 gram and resistance at Rs 50900 per 10 gram," he added.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver prices continued to deteriorate despite some relief seen in the dollar and US bond yields. On Tuesday, gold and silver rallied a bit in the morning session but couldn't hold on to their gains and slipped to close below important support levels of $1840 for gold and $21.30 in case of silver. In international markets, gold settled at $1,841, down 0.95%, and silver ended at $21.42, down 1.81%. Bullion prices also settled on a weak note in the domestic market, as gold settled at Rs 50,586, down 0.73%, and silver closed at Rs 60,618, down 1.43%.
Today, bullion prices might show some recovery from the bottom. Gold has support at $1822-1810, while resistance is at $1850-1862. Silver has support at $21.10-20.80, while resistance is at $21.58-21.70. In rupee terms gold has support at Rs 50,330–50,110, while resistance is at Rs 50,880–51,050, and silver has support at Rs 60,140-59,750 while resistance is at Rs 61,150–61,510.
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart
Precious metals continued to lose ground ahead of the US inflation data due later today. Selling pressure on industrial metals and crude prices may reduce some inflationary pressure on the global economy amid aggressive interest rate hikes in the US, intensifying selling momentum in precious metals. Officials from the European Central Bank have hinted at a rate hike in July, boosting demand for the dollar as a safe haven. As investors await US inflation data, day trend in gold and silver may remain range-bound to the downside. Gold has support level of Rs 50500 and resistance level of Rs 51200. Silver has support at Rs 60000 and resistance at Rs 62000 level.
Amit Khare, AVP- Research Commodities, Ganganagar Commodity
Gold and silver prices showed some downside movement on May 10. On the Multi-Commodity Exchange (MCX), June gold contracts closed down by 0.74% at Rs 50,586 for 10 gram. July contract silver futures closed at Rs 60,618 a kilogram, 1.43% lower. Yesterday June gold saw a high of Rs 51118 and then a low of 50511; silver reached a high of Rs 61999 and then a low of Rs 60390.
As per technical chart, gold and silver are trading at oversold zone and any time we can see a huge short-covering rally; momentum indicator RSI is also hinting at the same on the hourly and daily charts, so traders are advised to create fresh buy positions near given support levels. Traders should focus on important technical levels.
June Gold closing price Rs 50586, Support 1 - Rs 50400, Support 2 - Rs 50200, Resistance 1 - Rs 50750, Resistance 2 - Rs 51000.
July Silver closing price Rs 60618, Support 1 - Rs 60200, Support 2 - Rs 59700, Resistance 1 - Rs 61000, Resistance 2 - Rs 61510.Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.