Gold was trading with weakness on Tuesday amid stronger US Dollar and elevated bond yields as investors chose to remain on the sidelines ahead of US Inflation Data that will be declared later this week. The data could indicate the next rate hike in the next US Federal Reserve monetary policy announcements, a Motilal Oswal report noted.
Taking cues from their international peer, the yellow metal futures were trading with some weakness on the MCX at the time of filing of the story.
At around 5:24 pm, MCX December Gold futures were trading at Rs 50919 per 10 gram and were down by Rs 104 or 0.20 per cent from the Monday closing price.
Meanwhile, the December Silver futures were trading at Rs 58285 per kg around this time and were down by Rs 817 or 1.38 per cent.
MCX Gold futures are likley to trade in a lower range over this session, the Motilal Oswal report said. It sees support at Rs 50600-50430 while resistance at Rs 50900-51050.
Spot Gold has support at USD 1645-1630 while resistance at USD 1680-1700.
Likewise, Silver futures on MCX are also expected to rade in a lower range. Support is seen at Rs 57800-57550 while resistance is seen at Rs 58350-58570.
Support for spot silver is estimated at USD 19-18.80 while resistance is pegged at USD19.50-19.70.
Commodity and currency expert Anuj Gupta does not see this as a worrying trend. He said that Gold and Silver remain on the strong footing. Today’s correction is because of some profit booking.
In his intraday trading strategy, he recommends a sell on the December Gold futures at Rs 51200 with a stop loss of Rs 51500 and target of Rs 50600.
As for December Silver futures, Selling is recommended at Rs 58600 with a stop loss of Rs 59200 and price target of Rs 57800.
Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities said that Gold has seen a 1 per cent rise in this month till now.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)