Gold prices edged higher on Tuesday in the global markets after striking a near one-month low in the last session, helped by a slight pullback in the dollar although remaining worries over further hostile U.S. interest rate stroll kept the rise in check. Spot gold was up 0.2% at $1,738.90 per ounce, after striking its lowest since July 27 at $1,727.01 on Monday. Morning, the gold contracts were trading 0.2 % higher on the Multi-Commodity Exchange (MCX) at Rs.51,174 per 10 grams and silver shed 0.38 % at Rs.54,781 a kilogram.
Gold and silver fall on Monday after the dollar index hit fresh six-week highs. Both the expensive metals settled on a weaker note in the international markets. Gold October futures contract settled at Rs.51,163 per 10 gram with a loss of 0.61% and silver September futures contract settled at Rs.54,992 per one kilogram with a loss of 0.91%, said, Manoj Kumar Jain, Prithvi Finmart Commodity Research.
We expect gold has support at Rs.51,000-50,880 levels and resistance at Rs.51,330-51,500 levels while silver has support at Rs.54,650-54,400 levels and protection at Rs.55,300-55,550 levels. We suggest buying gold at around Rs.51,050 with a stop loss of Rs.50,880 on a daily closing basis for a target of Rs.51,350, he added.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities said, Gold prices traded steady on Tuesday with spot gold prices at COMEX trading marginal up near $1739 per ounce in the morning trade. Gold prices closed their decline on the softer dollar which is still trading near six week high. The yellow metal traded under pressure with the surge in U.S. bond yields which rallied to one month high along with a stronger dollar.
We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1720 and resistance at $1752 per ounce. MCX Gold October support lies at Rs.50,800 and resistance at Rs.51,600 per 10 grams.