Gold and silver prices rose slightly in Indian markets today, but still remained within a tight range. On MCX, gold futures rose 0.12% to ₹50,974 for 10 grams while silver rose slightly by 0.2% for ₹62,247 per kg. In global markets, gold rates were choppy today as a weaker US dollar supported the precious metal, but gains were capped amid improving global risk sentiment that lifted stimulated actions. Spot gold rose 0.2% to $1,856 while spot silver rose 0.1% to $22.13.
A weaker dollar makes bullion more attractive to buyers holding other currencies. Stock markets in Asia today are mostly up, following Friday’s rally on Wall Street. US markets will be closed today for the US Memorial Day holiday. Additionally, bolstering risk sentiment, in China, Shanghai offered corporate tax cuts and allowed all manufacturers to resume operations from June as authorities to revitalize a lockdown-hit economy. of Covid, Bloomberg reported.
“Attempts to rally in the stock market may also have reduced gold’s attractiveness as an alternative asset. US stock markets rose sharply yesterday amid debate over Fed monetary policy and hopes that consumer demand could remain strong. Gold may continue to swing in a range despite the lack of clear clues, but the Fed’s tightening stance and choppy investor buying may keep price pressure on,” Kotak Securities said in a note.
The trend in the US dollar, bond yields and equities may continue to affect gold and silver and the focus will be on economic data from major economies, comments from central banks and developments related to the spread of the virus and fighting between Russia and Ukraine, the brokerage added.
Analysts say worries about the health of China’s economy continue to weigh on industrial metals like silver. ETF outflows show waning investor interest and silver could remain volatile as gold and industrial metals may struggle to steer, Kotak added.
Gold traders will look to US payrolls figures later this week to gauge the Fed’s tightening path as it strives to tame inflation.
“The last two weeks have been bullish for sales and silver, a marked difference from the first week of May when bullion fell more than expected. This is partly due to the USD finally recovering its breath in its first signs of weakness this year. If the US dollar continues to decline, we could see the start of another uptrend for gold,” said Rahul Kalantri, Vice President of Commodities, Mehta Equities Ltd.
“Gold and silver could be seen reversing trends, with bullion trying to break through to the upside in morning trading hovering above their resistance levels. The key to watch this week is that the gold closes above $1867 and silver above $22.40 Thereafter, a light calendar and holiday on Monday in the US could limit gold’s immediate moves. , it will be important to watch risk catalysts for further momentum, which in turn will highlight headlines from Russia and China.Especially, this week’s US jobs report for April could also in turn contribute to depressing gold and silver prices,” he added.
Gold and Silver technical levels
“Gold has support at $1838-1824, while resistance at $1862-1874. Silver has support at $21.72-21.48, while resistance is at 22.30-22 $.55 In rupee terms, gold has support at ₹50,740–50,510, while resistance is at Rs51,180–51,350. Silver has support at Rs61,180-61,650, while resistance is at Rs62,680-63,110,” said Rahul Kalantri of Mehta Equity.