Gold jewellery
Gold jewellery
Image by Engin Akyurt from Pixabay

Gold was marginally higher by Rs 69 to Rs 46,906 per 10 gram in the national capital on Tuesday, according to HDFC Securities.

In the previous trade, the precious metal had closed at Rs 46,837 per 10 grams. In the international market, gold was quoting marginally lower at $1,778 per ounce and silver was flat at $26.15 per ounce.

"Gold prices traded marginally down with spot gold prices at COMEX (New York-based commodities exchange) trading at $1,778 per ounce on Tuesday. Gold prices fluctuated in narrow range trading marginally down on firm dollar index," according to Tapan Patel, Senior Analyst (Commodities), HDFC Securities. Traders and investors are awaiting the US FOMC (Federal Open Market Committee) meeting which may keep mixed trade in precious metals, he added.

On the MCX, gold prices fell by Rs 57 to Rs 47,405 per 10 gram in futures trade on Tuesday as speculators reduced their positions amid low demand. On the Multi Commodity Exchange, gold contracts for June delivery traded lower by Rs 57, or 0.12 percent, at Rs 47,405 per 10 gram in a business turnover of 10,887 lots. Analysts attributed the fall in gold prices to trimming of positions by participants.

Ravindra Rao, CMT , EPAT, VP-Head Commodity Research, Kotak Securities Ltd, said MCX Gold traded sideways to lower yesterday testing a low of 47,253. The crossover of 8 DMA below the 20DMA has given a slight edge to the bears. Having said that, the resistance is pegged near 47670 which could act as the supply zone, he said.

There can be a strong resistance near 47,800, above which the bear strength might fade, Rao said. The RSI is trading close to 50 indicating sideways move and there may be an immediate support near yesterday’s low of 47,253 and then at 47,100. “Going by the above evidence, we expect the price might decline today close to the second support near 47,100 provided resistance of 47,800 is held by the bears. On the flipside, a sustained break above 47,800 might reverse the intraday trend,” he said.

Silver moved higher by Rs 255 to Rs 67,890 per kilogram from Rs 67,635 per kilogram in the previous trade.

MCX Silver registered a low of 68055. However, a late recovery helped silver to end on a flat note. Rao of Kotak Securities said, the bears still have a slight edge as 8 DMA (68,670) is still below the 20DMA (69010). “Having said that, immediate resistance is near 69,010 and strong resistance is pegged at 69,500. Similarly, support is near 68,340 followed by 68,050. RSI is trading close to 50 indicating sideways move. We expect silver to trade sideways to lower until 69,500 holds. However if the bulls succeed in keeping it above 69,500 the trend might reverse,” Rao added.

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