Gold was trading lower in India on August 16 morning, tracking losses in the global market as an uptick in the dollar and worries over further US interest rate hikes weighed on sentiment.
At 9.44am, gold contracts were trading 1.01 percent down on the Multi-Commodity Exchange (MCX) at Rs 52,056 for 10 grams and silver was down 2 percent at Rs 58,090 a kilogram.
Spot gold traded 0.1 percent lower at $1,777.46 a troy ounce, slipping to its lowest since August 8 to $1,772.30.
Track Live Gold Prices Here
Manoj Kumar Jain, Prithvi Finmart Commodity Research
On August 15, gold and silver plunged in the international markets after downbeat Chinese data and strength in the dollar index.
December gold futures contract settled at $1,798.10, down 0.96 percent, and September silver futures contract settled at $20.27 a troy ounce, declining 2.07 percent.
Indian commodity exchanges were closed on August 15 on account of Independence Day.
We expect both the precious metals to remain volatile on August 16 and they can test their support levels again. Gold has support at $1,784-1,772 and resistance at $1,810-1,822. For silver, support is at $20.20-19.84 and resistance at $20.55-20.80.
On MCX, gold has support at Rs 52,300-52,080 and resistance at Rs 52,700-52,880 while silver has support at Rs 58,500-57,750 and resistance at Rs 59,600-60,100.
We suggest selling gold below Rs 52,500 with a stop loss of Rs 52,720 for a target of Rs 52,080.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Comex gold traded mixed near $1,795 after the previous day’s 1 percent decline. Weighing on the gold price is the rebound in the dollar, continuing ETF outflows and concerns about consumer demand in India and China.
The dollar index has bounced back on safe-haven buying and positioning ahead of the release of the minutes of the US Federal Reserve meeting.
Gold, which rallied sharply in the last few days, seems to be losing momentum near the $1,800 level and we may see some correction if the Fed maintains a hawkish stance.
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.