Gold and silver prices today: Yellow metal may move higher as govt imposes import restrictions on some items

Gold prices opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 58,900 per 10 grams and hit an intraday low of Rs 58,872. In the international market, prices hovered around $1,960.22 per troy ounce. Meanwhile, silver opened at Rs 73,685 per kg and hit an intraday low of Rs 73,681 on the MCX. The price hovered around $24.22 per troy ounce in the international market.

Anuj Gupta, Vice President of IIFL Securities, said, "Domestically, the government on Wednesday imposed import restrictions on certain gold jewellery and articles, which would help cut import of non-essential items. This will impact gold in the domestic market and price may move higher. To manage current account deficits, the government has taken this step. We expect the gold price to move upside and may test 60000–60500 very soon."

"As expected, yesterday gold prices increased sharply by 0.70% and closed at 59186 levels on the back of weakness in the dollar. The dollar index is trading at 15 months low level at 100.10 levels. Yesterday U.S. weak data gave support to the yellow metals as safe-haven demand. We expect the dollar index to go down further and test 99 to 97 levels. In the international market, it is trading at $1960 levels per ounce," added Gupta.

He sees technically strong support at 58800 levels and then 58500 levels, Resistance at 59230 and then 59189 levels. Today, one can buy on dips around 58800-58900 levels with a stop-loss of 58500 and for the target of 59500 to 59700 levels. Gold may test $1970 to $1975 levels in international markets.

In yesterday's session, gold and silver were up by more than 0.5% and 3.5%, respectively, as U.S. inflation data raised hopes that the Federal Reserve could soon stop tightening its monetary policy.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "The dollar Index is once again seen hovering below 101-mark, while U.S. Yields also was down by more than 2%. U.S. consumer prices rose modestly in June and registered their smallest annual increase in more than two years as inflation continued to subside, but probably not fast enough to discourage the Fed from resuming raising interest rates later this month. US CPI was reported at 3% against the previous data of 4%; Core CPI was reported at 3.8% against previous data of 5.3% (YoY), increasing the hopes for an ease in the rate hike cycle. However, not much of a change was seen in the probability chart for the next fed meeting, as it continues to show a 90% chance for a 25bps rate hike in July meet. The U.S. Treasury Secretary Janet Yellen's trip to China has raised hopes in Beijing that Trump-era tariffs on Chinese imports may be eased as she tries to smooth relations between the two nations. India meanwhile restricted imports on plain gold jewellery and articles, as the world's second-largest consumer of the precious metal tries to plug loopholes in its trade policy and help cut import of non-essential items. Focus now shifts to UK GDP and US PPI data points."

Additionally, Amit Khare, Associate Vice President of Research at Ganganagar Commodity Limited (GCL), said, "MCX Gold and Silver gave positive closing yesterday. August Gold closed at 59188(0.70%), and September Silver closed at 73546(3.45%). Bullion charts are showing strength, and good upside movement is possible in the near term. Momentum Indicator RSI also indicates the same, So traders are advised to create fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and book near given resistance levels: Gold August Support 59000/58800 and Resistance 59300/59500. Silver September Support 73000/72300 and Resistance 74000/74500."