Gold prices solid up in gusty trading on Monday in global markets, as a weakening dollar delighted greenback-priced bullion, although gains were controlled by some investors turning to riskier assets in Asia. At morning time, gold contracts were up 0.18% at Rs 51,005 for 10 gram on the Multi-Commodity Exchange (MCX) while silver gained 0.46% at Rs 62,399 a kilogram.
“A vast part of gold’s under performance has been due to investors moving to cash as equity markets down, during lockdowns in China also weaken demand. Typically, June is a bearish month for gold but that seasonal pattern appears to have been moved forward by one month,” City Index senior market analyst Matt Simpson told Reuters.
Technically, on MCX, in today’s trading session gold may remain sideways to up where it has resistance at Rs 51,300 levels with support at Rs 50,700 levels. Silver has resistance at Rs 63,000 levels and support at Rs 62,000 levels, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
Rahul Kalantri, VP Commodities, Mehta Equities, said, “The last two weeks have been bullish for gold and silver, a sharp difference from the first week of May where bullion fell more than expected. This is moderately due to the U.S. dollar finally taking a breather in its first signs of weakness this year. If the U.S. dollar continues to fall then we might see this as the beginning of another uptrend for gold.”
Gold has support at Rs 50,740–50,510 levels, while resistance is at Rs 51,180–51,350 levels. Silver has support at Rs 61,180-61,650 levels,while resistance is at Rs 62,680–63,110 levels, he added.