Experts are of the view that volatility is likely to persist tracking the muted trend seen in the international prices, but there is a strong support near Rs 51,100 per 10 gm.
India Gold October Futures fell on September 2 following muted trend seen in the international spot prices which also pared gains post opening in positive. Experts are of the view that volatility is likely to persist, but there is a strong support near Rs 51,100 per 10 gm.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading lower by 0.3 percent at Rs 51,330 per 10 gram at 09:30 hours. September silver futures were trading at Rs 67,592 per kg, down 1 percent.
Gold and Silver showed high volatility on Tuesday amid volatility in global currencies. The dollar index slipped to two-and-half-year lows and the rupee gained and tested six months highs.
Extreme volatility in global currencies kept both the precious metals volatile throughout the day. Gold and silver settled steady with minor gains in the international market.
Gold settled at $1,978.90 per troy ounce and silver settled at $28.64 per troy ounce. Due to gains in the rupee both the precious metals settled on a mixed note at MCX.
“Gold prices slipped from their highs during evening session after a rebound in the dollar index and better than expected US ISM manufacturing PMI numbers. However, silver get support as an industrial metal from better than expected manufacturing data,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol
“We expect both the precious metals remain volatile in today's session due to volatility in global currencies. Gold is having support at $1,955-1,940 per troy ounce and resistance at $1,988-2,000 per troy ounce. At MCX, gold is having support at Rs 51,100 on a closing basis and resistance at Rs 51,660-51,800 levels,” he said.
Jain further added that silver has support at $28.20-27.90 per troy ounce and resistance at $28.88-29.20 per troy ounce. At MCX, silver is having support at Rs 69,800 on a closing basis and resistance at Rs 71,200-72,000 levels.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance SecuritiesInternational gold and silver ended marginally in the green but were off session highs as the dollar rebounded and better-than-expected US manufacturing data improved hopes about a US economic recovery.
The Institute for Supply Management (ISM) said its index of national factory activity increased to a reading of 56.0 last month from 54.2 in July.
International gold and silver have started weak this Wednesday morning in Asian trade tracking a recovery in the US Dollar.
Domestic bullion could trade weak this Wednesday morning, tracking a negative start in the overseas prices.
Ravindra Rao, VP- Head Commodity Research at Kotak SecuritiesCOMEX gold trades 0.5% lower near $1967/oz after a near flat close yesterday. Gold is pressurized by a recovery in the US dollar index from a 2-year low set yesterday.
The US currency gained amid upbeat manufacturing data and efforts to revive fiscal stimulus talks. Also weighing on gold is ETF outflows and continuing strength in equity markets.
Gold may witness choppy trade along with gold but general bias may be on the upside as Fed's dovish stance may weigh on the US dollar.
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