Gold prices touched higher on Tuesday in global markets as a decline in U.S. Treasury yields countered pressure on greenback-priced bullion from sustained strength in the dollar. Benchmark 10-year U.S. Treasury yields expanded their decline on Tuesday after pulling back from the highest level in three and half years in the previous session, raising prices of zero-yield gold for now.
Today morning gold contracts were up 0.21 % at Rs 51,065 for 10 grams on the Multi-Commodity Exchange (MCX), while silver gained 0.67 % at Rs 61,912 a kilogram. The dollar index raised modestly, while the benchmark bond yield continued under pressure, keeping gold prices range-bound to the negative. China’s trade balance statistics came in below predictions, putting downward pressure on silver and other industrial metals.
Gold prices are struggling to hold higher levels, and selling pressures are anticipated in today’s session. It has resistance at Rs 51,600 and support at Rs 50900 levels, with a drop below this level likely to touch Rs 50,500. Silver is likely to touch Rs 60000 levels if it falls below Rs 61,800. The resistance level is at Rs 63,000, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
Trading Strategy
At MCX market, gold has support at Rs 50,800-50,550 levels and resistance at Rs 51,100-51,330 levels, while silver has support at Rs 61,100-60,660 levels and resistance at Rs 61,800-62,220 levels. We suggest closely watching given support levels of both the metals in today’s session, said, Manoj Kumar Jain, Prithvi Finmart Commodity Research
