Gold price future in India rose significantly on Tuesday. On the Multi-Commodity Exchange, gold futures climbed 0.22 per cent to Rs 50,753 for 10 grams at closing. Silver price, however, dropped on Tuesday, following the global cues. The precious metal futures plunged 0.79 per cent to Rs 56,478 for a kilogram.
In the international market, gold prices tumbled to near a nine-month low as US dollar strengthened to its highest level in 20 years. Spot gold was down 0.1 per cent at $1,732.17 per ounce at 0050 GMT while US gold futures dipped 0.1 per cent to $1,730.80. The dollar jumped to near a fresh 20-year high touched on Monday. Rising dollar has made safe-haven metal more expensive for the buyers of the other currencies.
Traders will keenly watch the consumer price index data of the United States, scheduled on Wednesday. Economists expect that the consumer prices rose 8.8 per cent in June from a year earlier, highest in 40 years, according to a survey by Bloomberg.
To control the surging inflation, the United States Federal Reserve may increase the interest rates faster than other central banks. The aggressive rate hike expectation pushed the dollar to a fresh high in decades in the previous session.
Benchmark US 10-year Treasury yields steadied after a dip on Monday.
“International spot and Comex gold and silver prices have started flat to marginally stronger on Tuesday morning in Asian trade as the benchmark bond yields extended losses, but upside remained capped as the dollar moved higher continuing to weigh on demand for bullion. Some support could come tracking the weakness of the equity markets. Today’s range of Comex August gold is $1720.57-$1748.57,” said Sriram Iyer, senior research analyst at Reliance Securities
“Domestic gold futures prices could start flat to marginally stronger on Tuesday morning, tracking overseas markets. A weaker Rupee could cap downside.
Today’s range of MCX August gold is Rs 50,550-50,805,” Iyer added.
“We expect gold to trade lower towards Rs Rs 50,200 levels, break of which could prompt the price to move lower to Rs 49,780 levels,” said said Saish Sandeep Sawant Dessai, research associate- base metals, Angel One Ltd.
“Gold prices slipped to 9-month lows and silver prices also dipped to nearly 2-year lows. Aggressive interest rate hike prospects by the US Federal Reserve and strength in the dollar index weighed on precious metals. Bullions will be volatile in today’s session. Gold has support at $1720-1708, while resistance is at $1740-1751. In INR terms gold has support at Rs 50,350–50,120, while resistance is at Rs 50,860–51,040,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
“Today’s range of COMEX September silver is $18.857-$19.447. Today’s range of MCX silver September Rs 56,775-57,440,” Iyer added. “Silver has support at Rs 56,350-55,750, while resistance is at Rs57,480–57,810,” Kalantri mentioned.