Gold Price Today Nears Rs 48,000-mark, Silver Rises too. What Investors Must Know

Gold price in India rose on Tuesday after experiencing a slump in the previous session. On the Multi-Commodity Exchange (MCX), August gold contracts hiked 0.18 per cent to Rs 47,860 for 10 grams at 0905 hours on July 13. Silver, another precious metal, also saw a jump in the domestic market. September silver futures increased 0.30 per to Rs 69,582 a kilogram.

In the international market, gold price steadied on Tuesday after hitting one-week low in the previous day. Spot gold climbed 0.1 per cent to $1,807.22 per ounce by 0120 GMT, according to Reuters. US gold futures were up 0.1 per cent to $1,808.1, the agency said. Investors keenly awaited the US inflation data that could influence the Federal Reserve’s timeline for easing its bond purchases.

The dollar index slumped 0.1 per cent on July 13.

The yellow metal has become expensive for domestic buyers on the back of weaker dollar and hike in international gold prices on Tuesday. The gold purchases in the country has been affected due to coronavirus pandemic in last one year. The nationwide virus outbreak has reduced the spending power of Indian middle class. In 2020, gold sales dropped to the lowest in more than two decades, according to the World Gold Council. However, the experts believe that the demand may rebound this year if gold price remains low.

“International spot gold and silver prices have started flat this Tuesday morning in Asian trade ahead of US CPI data tonight. Technically, LBMA Gold could trade in sideways to marginal upside momentum where support is at $1799-$1787 levels. Resistance is at $1813-$1822 levels. LBMA Silver is trading near 200-Daily Moving Average which is placed at $26.40 level below which will continue its Bearish momentum & further could see $25.80-$25.30 levels. Resistance is at $26.50-$26.90 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.

“Domestic gold and silver prices could start flat this Tuesday morning, tracking overseas prices. On the domestic front, MCX gold August holds a strong support near Rs 47,600-47,400 levels. Resistance is at Rs 47,900-48,100 levels. MCX silver September below Rs 69,500 levels could see a bearish momentum up to Rs 68,900-68,000 levels. Resistance is at Rs 70,100-71,000 levels,” Iyer added.

“Gold continues to tread a fine line between rates and inflation threats while managing to stay above $1800 an ounce level from past few days. The yearly average for the gold is at $1830 while 100 DEMA is placed at $1788 which will be the key range where gold prices will like to spend time for next few days. US equity benchmark markets and increasing currency are also curtailing the momentum in the precious metal,” said Sandeep Matta, founder, TRADEIT Investment Advisor.

“Gold on MCX also traded on expected lines yesterday and has given opportunity to accumulated gold around the pivot levels.Technically the bulls have a slight near term advantage however Rs 48,000 will again be a key resistance level today for the gold to pass and sustain. Key level for gold August contract – Rs 47,707. Buy zone above – Rs 47,707 for the target of Rs 47,937-48,090. Sell zone below – Rs 47,700 for the target of Rs 47,590-47,485,” Matta advised.

“Technically, the gold bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,750.10. First resistance is seen at today’s high of $1,814.00 and then at the July high of $1,819.50. First support is seen at today’s low of $1,791.00 and then at last week’s low of $1,784.70,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.

“Gold is showing more weakness in compared to silver since last two trading sessions. Momentum indicator RSI indicating some profit booking signal in daily chart. So traders are advise create short position in bullion’s near given resistance levels. Traders should also focus important technical levels given below for the day : August gold closing price Rs 47,774, Support 1 – Rs 47,500, Support 2 – Rs 47,200, Resistance 1 – Rs 48,000, Resistance 2 – Rs 48,225. September silver closing price Rs 69,375, Support 1 – Rs 68,800, Support 2 – Rs 68,100, Resistance 1 – Rs 70,000, Resistance 2 – Rs 70,610,” he added.

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