Gold prices steadied in international markets as geopolitical tensions and a continuous rise in coronavirus cases in India and the United States underpinned the yellow metal.
Gold prices saw mild gains in early trade in the futures market on July 17, taking cue from global trends.
Gold prices steadied in international markets as geopolitical tensions and a continuous rise in coronavirus cases in India and the United States underpinned the yellow metal.
At 0905 hours, MCX August gold futures were trading at Rs 48,825 per 10 grams, up Rs 52.
In the previous session, gold ended lower in international markets as the US dollar looked to recoup its loss from a day earlier.
The European Central Bank’s widely-expected decision to keep rates unchanged did not provide the markets with any bullish leads, experts say.
International bullion prices started lower on July 17 in Asian trade as markets awaited fresh triggers.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
Domestic precious metals ended lower on July 16, tracking weak overseas prices. Bullion could start weaker on July 17, tracking a weak start in the overseas markets.
MCX August gold contract had a volatile session in the range of Rs 48,727-49,245, where it did not manage to cross its all-time high of Rs 49,348 and saw a sharp fall to Rs 48,750.
It ended below Rs 48,900, indicating exhaustion at higher levels.
Resistance holds at Rs 49,000-49,250 and support is at Rs 48,700-48,550 .
MCX September silver made a high of Rs 53,199 but then corrected sharply to Rs 52,450 levels.
Prices are likely to trade with marginal correction in the Rs 51,700-57,900 range in the coming session.
LBMA gold spot traded in the $1,795-$1,813 range where it ended on a negative note below $1,810.
However some mild correction will continue below $1,800 up to $1,790-$1,784 levels. Resistance is placed at $1,808-$1,815.
LBMA silver spot traded in $19.11-$19.46 range and gave a negative close below $19.45 levels, including a sideways to marginal downside momentum up to $19.01-$19.67 levels. Resistance is at $19.36-$19.59 levels.
Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart
Gold and silver prices plunged on July 16 on upbeat US retail sales and core retail sales data.
Philly Fed manufacturing index was also better than expected. However, jobless claims rose more than expected to 13 lakh, but other economic numbers are showing signs of recovery.
Gold and silver prices corrected around 0.75 percent and 1 percent, respectively; gold settled at $1,800.30 per troy ounce and silver at $19.57 per troy ounce. On MCX, gold settled at around Rs 48,800 and silver at Rs 52,600 levels.
Gold is still holding $1,800 in the international market.
Both precious metals were likely to remain volatile due to the weekend session.
"If gold slips below $1,800 per troy ounce or Rs 48,770 per 10 grams, then it could test $1,792-1,784 per troy ounce or Rs 48,600-48,440 levels. $1,814 or Rs 49,055 will act as major resistance for gold," the analyst said.
"If silver slips below $19.50 per troy ounce or Rs 52,550 per kg, it could test $19.34-19.20 or Rs 52,200-51,800 levels; $19.80 or 53,220 will act as major resistance for silver."
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