Gold Prices Today: Yellow metal to remain subdued amid global macro concerns, support around Rs 51,640–51,420

July 04,2022

Gold prices edged lower on Monday in international markets as an elevated US dollar hurt demand for greenback-priced bullion and also outweighed support from weakening Treasury yields. Spot gold was down 0.2% at $1,807.19 per ounce as of 0101 GMT after hitting a five-month low of $1,783.50 on Friday. US gold futures fell 0.5% to $1,809.50.

At 9.36am, gold contracts were trading higher by 0.49 percent at Rs 52,172 for 10 grams on the Multi-Commodity Exchange (MCX) while silver added 0.1 percent to Rs 57,800 a kilogram.

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Rahul Kalantri, VP Commodities, Mehta Equities Ltd

Gold and silver prices witnessed high volatility last week after the US, UK, and European central bank chiefs at the annual ECB Forum on Wednesday indicated more policy action to combat inflation. The dollar index also gained and pushed precious metals lower. The dollar index crossed 105 marks again during the week. Gold prices slipped below $1800 per troy ounce on Friday before settling higher at $1812.90 per troy ounce while silver prices slipped to nearly two-year lows to close below $20 per troy ounce. Despite the US 10-year bond yields slipping below 2.90%, gold and silver exhibited weakness. In the domestic market, gold prices surged on Friday after a surprise duty hike by the government of India on gold to curb imports and support the rupee. Import duty on gold hiked by 5% to 12.5%.

Gold has support at $1796-1784, while resistance is at $1818-1827. Silver has support at $19.55-19.20, while resistance is at $20.20-21.45. In rupee terms gold has support at Rs 51,640–51,420, while resistance is at Rs 52,220–52,440. Silver has support at Rs 57,350-56,850, while resistance is at Rs 58,380–58,710.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded steady on Monday with spot gold prices at COMEX trading flat near $1809 per ounce in the morning trade. Gold prices witnessed marginal recovery after falling below $1800 to seven month low on Friday. Gold prices fell after India hiked import duty with immediate effect while rate hike expectations were already in play to pressure the yellow metal. The US market are closed today on account of 'Independence day'.

We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1790 and resistance at $1820 per ounce. MCX Gold August support lies at Rs 51600 and resistance at Rs 52100 per 10 grams.

Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities

Gold prices remained subdued even after posting three weeks of down trend and a low of $1780, respite seems elusive. This, despite the fact that recession fears escalated on Friday after the US ISM Manufacturing, PMI slumped to two-year lows. Adding to the risk-off mood was the further geopolitical tension between Russia and Ukraine, as well as China’s failure to provide butting support.

Clearly, a robust dollar index and buoyant treasury yields have inhibited any bullish sentiments. Expect gold prices to remain under pressure for some time now. If $1800 is again breached, a move towards $1780 -1760 cannot be ruled out . Bulls will only return if $1845 levels are taken out on the upside.

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