On Monday, the yellow metal prices were flat as they remained below Rs 47,000-mark. On the Multi-Commodity Exchange (MCX), the price of gold futures rose by 0.11% and was at Rs 46, 976 for 10 grams at 10 am IST on June 28.
Silver prices however managed to move up trade by 0.30 percent at Rs 68, 079 per kilogram.
Despite the drop in prices, the retail demand for yellow metal in India remained weak in the previous week.
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In the international market as well, the prices of gold fell to the week’s low due to the stronger dollar. The gold was down to $1,777.03 per ounce. And the US gold futures shed by 0.2% to $1,774.80.
Further, the precious metal Platinum too suffered, it fell 0.4% to $1113.5 per Troy ounce.
Amit Khare, Ganganagar Commodities Limited, said, “The momentum indicators are turning up, and a base appears to have been forged around $1,773. A move above $1,800 is needed to confirm the bottom. The US 10-year yield stalled at 1.50%, another bullish signal is that bitcoin is not seeing a renewed rally after briefly falling below $30,000.”
He added, “Gold and silver both are trading oversold ones. The momentum indicator RSI is also creating positive divergence on four hourly charts, so traders are advised to create a long position in gold, silver near support levels and traders should also focus on important technical levels given below for the day.”
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Senior Research Analyst at Reliance Securities, Sriram Iyer said, “Inflation measure was below expectation in May. The data initially weighed on the dollar, but the currency recovered from the lows of the sessions and kept upside capped.
According to CFTC data, on the speculative side of things, gold new longs were reduced by 38,288 contracts to 76,163 while silver net longs were reduced by 16,675 contracts to 29,882 in the week to June 22.”
He further said, “Domestic gold and silver prices could start flat to weaker on Monday morning, tracking overseas prices. On the domestic front, MCX Gold August holds strong support of Rs 46,800 where it could bounce back up to Rs 47,000-47,200 levels. If MCX Silver July trades above Rs 67,500 levels we could witness a continuation of its bullish momentum up to Rs 68,200-70,000 levels. Support is at Rs 67,000-65,800 levels.”