Gold and silver prices today: Yellow metal set for fourth successive weekly loss

Gold prices on the Multi Commodity Exchange (MCX) opened on Friday at Rs 58,396 per 10 grams and hit an intraday low of Rs 58,341. In the international market, prices hovered around $1,911.40 per troy ounce. Meanwhile, Silver opened at Rs 70,205 per kg and hit an intraday low of Rs 70,200 on the MCX. The price hovered around $22.67 per troy ounce in the international market.

Last Friday, Gold prices on the MCX opened at Rs 57,980 per 10 grams. In the international market, prices hovered around $1,908.15 per troy ounce. Meanwhile, Silver opened at Rs 68,299 per kg on the MCX. The price hovered around $22.57 per troy ounce in the international market.

Gold prices are on track for a fourth consecutive weekly loss on the back of positive economic data and increasing bets on further interest rate hikes by the Fed, weighing on non-yielding bullion.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "US private payrolls increased more than expected in June, adding more than 400k jobs indicating strength in the labour market despite growing risks of a recession from higher interest rates. Meanwhile, U.S. Jobless claims data reported slightly higher capping losses on the lower end. Fed official Lorie Logan said there was a case for a rate rise at the June policy meeting, which affirmed her view that more rate increases would be needed to cool off a still-strong economy. Further weighing on gold and silver price were the U.S. Yields from 3.8 to 4% levels, highest since March."

Focus now shifts to U.S. nonfarm payrolls report for more clarity on the Fed rate-hike path. A close watch is also on U.S. Treasury Secretary Janet Yellen's Beijing visit amid renewed tensions.

Anuj Gupta, Vice President of IIFL Securities, said, Yesterday, gold prices corrected by 0.16% at 58380 levels due to positive data from the U.S. market. We saw strength in the U.S. labour market, supporting the Dollar and bond yield. Gold lost its safe-haven demand. FOMC is expecting to increase the interest rates after the U.S. data."

He sees technically strong support at 58000 levels and then 57700 levels, Resistance at 58700 and then 59000 levels. For today One can sell around 58600-58700 levels with a stop-loss of 59000 and for the target of 58000 to 57700 levels. Gold may test $1900 to $1895 levels in international markets.

MCX Gold and Silver gave negative closing yesterday. Amit Khare, Associate Vice President (Research) at Ganganagar Commodity Limited, said, "August Gold closed at 58401(-0.15%) and September Silver closed at 70324(-1.43%), Bullions charts are trading at oversold zone, good short covering is possible is near term,  Momentum Indicator RSI also indicating the same, So traders are advised to create fresh buy positions in Gold and Silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold August Support 58200/57900 and Resistance 58560/58750. Silver September Support 70000/69400 and Resistance 70900/71400."

Navneet Damani, Senior V.P. – Commodity Research at MOFSL,  said, "Gold price continues to trade flat as investors digested minutes from the Federal Reserve's latest meeting while looking out for a range of economic data that could influence the U.S. central bank's policy trajectory."

FOMC minutes showed a united Fed agreed to hold interest rates steady at the June meeting to stall and assess whether further rate hikes would be needed. Federal official John Williams mentioned that it was the right move for the central bank to hold rates steady while hinting that it may have to raise rates again at some point.

"Traders also kept a close watch on updates about China's export controls on semiconductor metals as it ramps up a tech fight with the United States ahead of Treasury Secretary Janet Yellen's Beijing visit. On Thursday before Friday's nonfarm payroll report, investors' focus now shifts to the U.S. Labor Department's JOLTS, ADP, and jobless claims. Broader trend on COMEX could be in the range of $1900- 1935, and on the domestic front, prices could hover in the range of Rs 58,000 – 58,800 could be expected," said Damani.