Gold and silver prices today: Yellow metal may test 60,000 and silver 72,000

Gold prices on the Multi Commodity Exchange (MCX) opened on Monday at Rs 58,739 per 10 grams and hit an intraday low of Rs 58,689. In the international market, prices hovered around $1,925.16 per troy ounce. Meanwhile, silver opened at Rs 71,284 per kg and hit an intraday low of Rs 71,110 on the MCX. The price hovered around $23.04 per troy ounce in the international market.

Last Monday, Gold prices opened on the MCX at Rs 58,154 per 10 grams. In the international market, prices hovered around $1,917.24 per troy ounce. Meanwhile, silver opened at Rs 70,060 per kg on the MCX. The price hovered around $22.75 per troy ounce in the international market.

Anuj Gupta, Vice President of IIFL Securities, said, "Last week gold increased by 1.03% and closed at 59792 levels, MCX Silver increased by 3.27% and closed at 71333 levels. Dollar Index corrected by 0.62% and closed at 2 week's low level at 101.92 levels."

The dollar corrected on the back of signs of a less resilient U.S. labour market as per the latest report by Labor Department. The employment report showing 110,000 fewer jobs were created in April and May than earlier reported reduced the outlook for how long the Federal Reserves will keep interest rates higher. Gold rallied after the Labor Department reported that U.S. employers added 209,000 nonfarm payrolls in June. However, these are lower than expected.

"Now it is expected the Fed may not increase interest rate as job data is not as per expectation. The dollar index, which is now 2 week's low level, supports gold and silver prices. Now the safe-haven demand of gold and silver is like to increase," said Gupta.

He sees that the trend of gold and silver is looking Sideways. Gold has support at 58400 ($1910) and then 57800 ($1880) levels, while resistance at 59300 ($1940) and then 59800 ($1960) levels. For next week we are recommending buying gold near 58200 to 58400 with the stop loss of 57800 levels for the target of 59300 levels.

Silver support at 69500 level ($22.40) and 68000 ($21.80) levels, while restarted at 72500($23.50) and then 74000($24.20) levels. Silver may test 72500 to 73000 levels very soon again. The trend of bullions is sideways to up, so we are advocating buy on dips strategy in the bullions and metals.

Adding to it, "Amit Khare, Associate Vice President (Research) at Ganganagar Commodity Limited (GCL) said, "MCX Gold and Silver gave positive closing yesterday. August Gold closed at 58782(0.67%), and September Silver closed at 71310(1.42%), Bullions charts are trading at an oversold zone, and good short covering 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 58600/58300 and Resistance 59000/59200. Silver September Support 70600/69900 and Resistance 71400/71700."

Gold prices inched higher in the early morning trade after U.S. jobs data last week cast doubts over the labour market's strength, prompting investors to be more sceptical of the Federal Reserve's rate hike trajectory. U.S. economy added the smallest jobs in 2-1/2 years in June, while fewer jobs were created in April and May, indicating that higher borrowing costs were starting to dampen businesses' appetite to continue boosting headcount. On other hand, the unemployment rate remained near a multi-decade low, however, falling back to 3.6% after a slight rise in May. 

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Wage growth was also stronger than expected at 4.4% on a year-on-year basis. An increasing number of countries are repatriating gold reserves as protection against global uncertainties. U.S. Treasury Secretary Janet Yellen said meetings with senior Chinese officials in recent days were "direct" and "productive", helping stabilise the superpowers' often rocky relationship as her four-day Beijing trip ended. There are no major economic data points scheduled from the US today, however, focus will be on comments from a few fed officials. Broader trend on COMEX could be in the range of $1905- 1940 and on domestic front prices could hover in the range of Rs 58,300-59,200."