Gold, Silver Prices Edge Lower; Yellow Metal Holds Rs 51,000

Gold and silver futures edged lower on Thursday, taking cues from the international spot rates. On the Multi Commodity Exchange (MCX), gold futures, due for an August 5 delivery, were last seen 0.06 per cent down at Rs 51,018, compared to the previous close of Rs 51,051. Silver futures, due for a July 5 delivery, were last seen 0.1 per cent lower at Rs 61,965 against the previous close of Rs 62,026.

Domestic spot gold with a purity of 24 carats opened at Rs 51,136 per 10 grams today, and silver at Rs 62,048 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 rates were slightly down, restrained by a rise in Treasury yields ahead of key U.S. jobs and inflation data this week that could influence the Federal Reserve's rate-hike roadmap for fighting inflation.

Spot gold was down 0.1 per cent at $1,851.70 per ounce, while U.S. gold futures eased 0.1 per cent to $1,853.90.

Higher U.S. 10-year Treasury yields make bullion less attractive for buyers. Gold is considered an inflation hedge, but higher interest rates lift the opportunity cost of holding zero-yield bullion.

Analyst View:

Ravi Singh, Vice-President and Head of Research, ShareIndia: "Gains in U.S. dollar and continuing Fed's tightening expectations may keep pressure on gold prices. Buy Zone above - Rs 51,150 for the target of Rs 51,500. Sell Zone below - Rs 50,800 for the target of Rs 50,500."

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 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 51,051, Support 1 - Rs 51,000, Support 2 - Rs 50,850,  Resistance 1 - Rs 51,200, Resistance 2 - Rs 51,400. July Silver closing price Rs 62,026, Support 1 - Rs 61,750, Support 2 - Rs 61,500, Resistance 1 - Rs 62,550, Resistance 2 - Rs 63,100."