India Gold August Futures trade in a range on July 1 after hitting record high in the previous session tracking positive trend in the international spot prices as a spike in COVID-19 infections in the United States push investors towards the safety of bullion.
Spot gold edged higher towards at $1,782.21 per ounce, after hitting its highest since early October 2012 at $1,785.46 in the previous session, said a Reuters report.
Experts are of the view that the trend in global gold and silver is likely to remain on the upside amid rising fears of COVID-19 related cases, and global recession. The yellow metal could face some resistance around 49050-49,230 levels.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.04 percent at Rs 48,781 per 10 gram at 09:20 hours. July futures for silver were trading 0.35 percent higher at Rs 49,824 per kg.
Gold and silver prices gained on Tuesday amid rising coronavirus cases and worries on global growth. Gold prices gained around 1 percent and crossed $1800 per troy ounce at Comex division first-time in the last 8 years. Silver prices also gained around 2.50 percent and settled at $18.64 per troy ounce.
At MCX, gold prices reached to record highs of 48,825 and settled around 48,700 levels. Silver prices also crossed 50000 levels and settled around 50300 levels.
“U.S. Federal Reserve chairman is shows extraordinary uncertainty over economy due to pandemic. Viruses cases crossed 10 million in the world with death toll of 0.5 million. IMF already raised Red Flag on global growth with estimate of negative 4.9% growth in the year 2020,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.
“Rising coronavirus cases, grimed outlook on global growth and geo-political tensions will continue to support safe haven buying in both the precious metals. Long term trend of both the precious metals remain bullish and every decline in the prices will be opportunity to buy,” he said.
Jain further added that Gold is having support at $1784 per troy ounce /INR 48330 on a closing basis, prices sustain above $1800 / INR 48700 could extend the gains towards $1814-1822/INR 48900-49050 levels.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver rose with gold futures touching $1800/ounce on technical buying. Domestic precious metals ended higher with gold touching new all-time high on Tuesday tracking gains in the overseas markets.
Technically, MCX Gold August contract gave a breakout above 48500 levels with more than 1 percent gains including good volume activity where prices has reached to uncharted territory indicating for bullish momentum to continue up to 48990-49230 levels. Support holds at 48400 levels.
MCX Silver September traded in 48958-50494 levels range where it has bounced from 48958 levels and closed on positive note above 50000 levels which signifies momentum to continue up to 50900-51400 levels and support is at 49900-49300 levels.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades mixed near $1800/oz after a 1.1% gain yesterday when it tested the highest level since 2011. Gold is supported by rising virus cases, mixed economic data, weaker growth outlook and increased US-China tensions.
Gains in the equity market and lack of fresh ETF buying has limited upside. Gold has breached the pivotal $1800/oz level paving way for more gains however rally may not sustain if equity markets continue to hold firm.
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