Gold prices opened on the Multi Commodity Exchange (MCX) on Friday at Rs 59,566 per 10 grams and hit an intraday low of Rs 59,543. In the international market, prices hovered around $1,979.10 per troy ounce. Meanwhile, silver opened at Rs 75,489 per kg and hit an intraday low of Rs 75,465 on the MCX. The price hovered around $25.20 per troy ounce in the international market.
Anuj Gupta, Vice President of IIFL Securities, said, "Yesterday gold prices closed on a negative note by 0.38% at 59556 levels. Short covering in the dollar index put pressure on bullion. The market is waiting for the FOMC decision on interest rates next week. In the international market, gold is trading at $1,971 levels per ounce."
Gupta sees technically strong support at 59200 levels and then 59000 levels, Resistance at 59800 and then 60000 levels. Today, one can buy on dips around 59200-59300 levels with a stop-loss of 59000 and for the target of 59700 to 59800 levels. Gold may test $1980 to $1985 levels in international markets.
Amit Khare, Associate Vice President at Ganganagar Commodity Limited (GCL), said, "MCX Gold and Silver gave a negative closing yesterday. August Gold closed at 59552(-0.40%) and September Silver closed at 75449(-1.27%), Bullion's daily charts are now showing profit booking, Trading at overbought zone; Momentum Indicator RSI also indicating the same. So, traders are advised to book profit in longs and can create fresh short positions in gold and silver near the given residence level one with the stop loss of resistance level two and book near given support levels: Gold August Support 59350/59200 and Resistance 59750/60060. Silver September Support 75000/74500 and Resistance 75900/77000."
Gold prices slipped from a two-month high as the dollar and bond yields ticked higher, although hopes of a pause in rate hikes by the U.S. Federal Reserve after the July meeting limited the decline.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, touching the lowest level in two months amid labour market tightness and defying efforts by the U.S. Fed to slow demand. However, Philly fed manufacturing was reported lower than expectations capping some losses for the metal. The Fed is expected to raise rates by 25 basis points (bps) in a July 25-26 meeting next week, keeping them in the 5.25%-5.5% range until cuts are seen in 2024 onwards, per CME’s Fedwatch tool. UK consumer inflation data missed estimates on Wednesday, spurring bets that the Bank of England was close to ending its rate hike cycle. The reading followed similar declines in U.S. inflation seen last week, which ramped up bets that the Federal Reserve was also close to hitting peak interest rates for the year. Focus today will be on the UK retail sales data.”