Gold Price Was Down 0.2 Per Cent At $1,885.51 Per Ounce.

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Gold prices on MCX were trading lower , mirroring the weak global trends. On Multi Commodity Exchange, gold August futures were trading at Rs 49,022 per 10 gram, down Rs 102 or 0.21 per cent, as against the previous close of Rs 49,124. Silver July futures were ruling at Rs 71,519 per kg, down Rs 365 or 0.51 per cent. In the previous session, silver futures ended nearly one per cent higher at Rs 71,884 per kg. On COMEX front, gold was seen trading modestly lower near $1890/oz after a 0.1 per cent gain in the previous session. Globally, spot gold was down 0.2 per cent at $1,885.51 per ounce. US gold futures fell 0.4% to $1,888.80 per ounce. The dollar index edged up slightly to trade near 90.137 against its rivals, making gold less appealing for other currency holders, according to Reuters COMEX gold trades modestly lower near $1890/oz after a 0.1% gain yesterday. Weighing on gold price is firmness in the US dollar index ahead of US inflation data and ECB’s monetary policy meeting today. ETF activity remains mixed while consumer demand in India remains impacted by virus-related restrictions. Gold may remain choppy ahead of key events however the general bias remains on the upside unless we see a sharp rise in US dollar.

The gold outlook will be clearer after tonight’s US CPI data, so ahead of that most investors remain on the sidelines and MCX gold price is sideways. Notably, there may be a knee-jerk reaction in the market and gold prices may fall if the inflation data comes in higher than expected. However, the fundamentals are still favourable for gold prices because of the Federal Reserve’s insistence that the ongoing inflation is transitory. In MCX Gold, consistent trying below 49000, will push prices towards 48450-48300-48000. The crucial resistance is around 49650 and sustenance above that will push towards 50000-50300.

Today, we expect the MCX Gold Aug prices to trade sideways. On the upside, resistance is seen at 49,350 level. Breaking above this level on an hourly closing basis, we may see prices heading towards 50,000 mark. On the downside, 48,800 will act as immediate strong support for the prices. MCX SILVER Jul prices are also likely to trade sideways. On the hourly chart, resistance is seen at 72,000 level. If prices manage to break above this level on hourly closing basis, we may see prices heading towards 73,000 level for intraday. On the downside, strong immediate support is seen at 71,000 level. On the Comex front, Gold prices need to sustain above the $1900/ounce mark for further upside towards $2000/ounce level.