Gold, Silver prices in India on July 14: Gold and silver prices in India struggled to hold gains on profit booking in Tuesday's session after trading near record high in yesterday's session.
Tracing the decline from overseas commodity markets, Gold futures on MCX were trading Rs 128 lower at Rs 49,020 per 10 gm today against the previous close of Rs 49,148 per 10 gm, after hitting a lifetime high of Rs 49,348 in the previous week. Gold August Futures today touched an intraday high of 49060 and a low of 48,856 today, after opening at 49,050 per 10 gm.
Similarly, Silver futures too fell by Rs 600 to trade at 52,448 per kg today. Gold and silver prices in the commodity market have been hitting new highs recently as traders shunned risk and sought safe havens during coronavirus crisis.
From the lows reached in March of Rs 38,500 per 10 gram, when the coronavirus pandemic started to spread, yellow metal prices surged over 22% to fresh all-time highs in July 2020 amid rally in overseas prices of the bullion metal. Experts suggest the yellow metal is expected to touch up to Rs 55,000 per 10 gram by the end of 2020.
Gold price slipped slightly in international markets as dollar gained, making the yellow metal more expensive for other currencies' holders. The dollar index, which gauges the greenback's strength against a basket of six currencies rose 0.1% to 96.56 against its rivals, making gold more expensive for holders of other currencies.
Concerns over the economic impact of rising coronavirus infections in many countries, especially in the two largest economies-US and China have driven investment inflows into safe-haven assets like gold.
Spot gold price crossed over its eight-year high at $1,800 per ounce hit last Tuesday and traded flat at its last close of $1,811 today.
In terms of Spot gold's technical outlook, experts suggest that prices will continue to edge higher as long as they stay above $1,790.
Resistances for spot gold are seen at $1830 followed by $1882, said Geojit Financial in its note and added that an unexpected drop below $1770 could negate the buying momentum and take prices lower. For MCX Gold Futures, the brokerage estimated the resistance at Rs 49,300/51,500 and support at Rs 48,540.
On Gold's near-term outlook, Hareesh V, Head Commodity Research at Geojit Financial Services said,"Gold's haven demand continues to be supported by concerns over surging new virus cases across the globe, weak dollar and escalating political and financial uncertainties. Meanwhile, signs of an economic rebound are likely to trigger higher level profit booking."
On gold's technical outlook (London spot), he added," As long as prices stay above $1770 bullish sentiments are likely to continue with resistance is seen at $1830 followed by $1882 levels. The immediate downside reversal point is $1735."