Gold, Silver Prices Climb On Global Cues; Yellow Metal Trades Above Rs 51,000

Gold and silver futures climbed on Thursday, taking cues from the international spot rates. On the Multi Commodity Exchange (MCX), gold futures, due for a June 3 delivery, were last seen 0.44 per cent up at Rs 51,012, compared to the previous close of Rs 50,788. Silver futures, due for a July 5 delivery, were last seen 0.43 per cent higher at Rs 61,843 against the previous close of Rs 61,580.

Domestic spot gold with a purity of 24 carats opened at Rs 51,080 per 10 grams today, and silver at Rs 61,605 per kilogram - both rates excluding GST (goods and services tax), according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Foreign Exchange Rates:

Globally, gold prices rose today, getting support from slightly lower U.S. Treasury yields and a retreat in the dollar. Spot gold was up 0.3 per cent at $1,850.84 per ounce. U.S. gold futures also climbed 0.3 per cent to $1,855.00.

A weaker dollar and lower U.S. 10-year Treasury yields make bullion more attractive for buyers.

Analyst View:

Amit Khare, AVP - Research Commodities, Ganganagar Commodity Ltd: "As per the technical chart, gold and silver are making bottom. We can see a good upside movement in the coming future. Momentum indicator RSI also cited the same in hourly as well as the daily chart. So traders are advised to create fresh buy positions near given support levels. They should focus important technical levels given for the day: August Gold closing price Rs 50,865, Support 1 - Rs 50,700, Support 2 - Rs 50,550,  Resistance 1 - Rs 51,000, Resistance 2 - Rs 51,200. July Silver closing price Rs 61,580, Support 1 - Rs 61,200, Support 2 - Rs 60,800, Resistance 1 - Rs 61,900, Resistance 2 - Rs 62,300."

Ravi Singh, Vice-President and Head of Research, ShareIndia: "Gold may remain sideways to down this week."

He suggested, "Buy Zone above - Rs 51,000 for the target of Rs 51,300. Sell Zone below - Rs 50,700 for the target of Rs 50,500."