Gold and silver futures rose on Tuesday, taking cues from international spot rates. On the Multi Commodity Exchange (MCX), gold futures, due for a June 3 delivery, were last seen 0.21 per cent up at Rs 51,064, compared to the previous close of Rs 50,959. Silver futures, due for a July 5 delivery, were last seen 0.39 per cent higher at Rs 61,736 against the previous close of Rs 61,497.
Domestic spot gold with a purity of 24 carats opened at Rs 51,468 per 10 grams today, and silver at Rs 61,967 per kilogram - both rates excluding GST (goods and services tax), according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
#Gold and #Silver Opening #Rates for 10/05/2022#IBJA pic.twitter.com/fjkcCrmNQ4
Foreign Exchange Rates:
Gold prices recovered as the U.S. dollar moved away from recent two-decade highs. Spot gold was up 0.29 per cent at $1,859.31 per ounce. U.S. gold futures were little changed at $1,859.
Gold is seen as a hedge against inflation and a safe store of value during times of political and economic crises but is highly sensitive to rising short-term U.S. interest rates, which raise the opportunity cost of holding non-yielding bullion.
Analyst View:
Amit Khare, AVP - Research Commodities, Ganganagar Commodity Ltd: "As per the technical chart, gold and silver are trading at oversold zone. Anytime we can see a huge short-covering rally. 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: June Gold closing price Rs 50,959, Support 1 - Rs 50,900, Support 2 - Rs 50,700, Resistance 1 - Rs 51,100, Resistance 2 - Rs 51,300. July Silver closing price Rs 61,497, Support 1 - Rs 61,300, Support 2 - Rs 60,700, Resistance 1 - Rs 62,000, Resistance 2 - Rs 62,500."
Ravi Singh, Vice President and Head of Research, ShareIndia: "Inflation and more policy tightening from the central banks in the near future are building pressures on the gold price."
He suggested, "Buy Zone above - Rs 51,100 for the target of Rs 51,300. Sell Zone below - Rs 50,800 for the target of Rs 50,500."
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