Today gold and silver today continued their battle in India’s futures market. On MCX, gold futures were dipped to 0.2%, about near a one-month low of ₹47,498 per 10 gram whereas silver futures fell below the satisfactory level of 0.4% to ₹66740 per kg. The previous session witnessed a dip in gold of 0.6% while silver decreased to 0.9%. Gold rates are consistently low for about ₹1,000 compared to last week’s high amidst the global cues.
MCX gold has accumulated support at ₹46,850 and resistance at ₹48,650.
Gold may continue to experience a storm-tossed trade as market players highly react to economic scores, central bank remarks and the prevalent COVID situations, Kotak Securities added in a note.
ETF flows also resulted in low scales, indicating resistance from the investors. On Thursday, the holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, dipped to 1,027.61 tonnes.
“Initial bias for gold likely to be on the weaker side but stiff support is placed at $1788. A direct break of which the momentum would continue in the near term. Likewise, it required to break above $1835 to trigger recovery rallies in the counter,” domestic brokerage Geojit averred.
For silver, “the inability to move past the support of $24.20 chances of recovery upticks are still on the cards. Meanwhile, an unexpected drop below that is a signal of long liquidation pressure,” Geojit asserted.
“MCX silver has support at ₹66,800 and resistance at ₹69,200”, the brokerage added.
Media reports cited that gold imports in July magnified compared to the previous year as the demand hiked at a sudden rate just after the states lifted the lockdown curbs.