Despite the pullback, gold was on track for its biggest weekly drop in more than a month as a stronger dollar hit demand, Reuters reported. Gold prices fell about 3.7% this week, data showed.
On the Multi Commodity Exchange (MCX), the August gold contract was trading 0.16% higher at 50,700 rupees per 10 grams at 0930. September silver futures fell 0.07% to 56,899 rupees per kilogram.
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Gold and silver held steady in international markets on Thursday after two days of sharp losses. Both precious metals were slightly higher on international markets.
The August gold futures contract settled at $1,739.70 a troy ounce and the silver September futures contract settled at $19.19 a troy ounce. Both precious metals closed higher in the domestic market on a weaker rupee.
“We expect gold and silver to likely see short covering in the coming sessions, with gold likely to test $1,760 per troy ounce and silver likely to test the $20.00 per troy ounce level,” Manoj Kumar Jain, Commodities and head of currency research
“On MCX, gold has support at Rs 50,440-50,280 and resistance at Rs 50,800-50,950, while silver has support at Rs 56,500-56,100 and resistance at Rs 57,440-57,880,” he said.
Jain recommends buying gold on dips around Rs 50,500 with a daily close of Rs 50,330 with a target of Rs 50,850 and silver around Rs 56,500 with a daily close of Rs 55,900 with a target of Rs 57,700.
Trading Strategy: Experts: Sriram Iyer, Senior Research Analyst, Securities International, Gold and silver prices recovered from session lows to close slightly higher as dollar rally paused. However, upside remained limited as benchmark bonds rallied on Thursday. Domestic gold and silver futures also rebounded from session lows on Thursday, tracking international prices.
Tracking overseas markets, domestic gold futures prices are likely to start flat to slightly higher on Friday morning. A slightly stronger rupee may limit upside.
Today’s MCX August gold range is 50400-50900. Tracking overseas markets, domestic silver futures prices are likely to start flat to slightly higher Friday morning.
A slightly stronger rupee may limit upside. Today’s MCX silver September range is 56715-57300.
(Disclaimer: Advice, advice, views and opinions given by experts are their own. These do not represent the views of The Economic Times)