Gold Prices Today: Yellow Metal, Silver Slump. Should You Invest Now?

Gold prices in India edged lower on Thursday tracking the international peers. On the Multi-Commodity Exchange (MCX), gold futures were up by 0.39 per cent at Rs 48,930 for 10 grams at 1120 hours. Silver also slumped on June 10. July silver futures were trading 0.75 per cent higher at Rs 71,347 a kilogram.

In the international market, gold prices dropped as investors had turned cautious ahead of the European Central Bank meeting. Spot gold was down 0.1% at $1,886.66 per ounce, as of 0305 GMT. US gold futures fell 0.4% to $1,888.50 per ounce. The dollar index edged up slightly to trade near 90.183 against its rivals, making gold more expensive for other currency holders.

“International spot gold and silver prices have started flat to marginally weaker this Thursday morning in Asian trade as investors sat on the sidelines waiting for clearer signals on inflation levels, jobs data and economic growth ahead of U.S. data and the European Central Bank meeting later in the day,” said Sriram Iyer, senior research analyst, Reliance Securities.

“Technically, LBMA Gold Spot holds a strong support of 21-Daily Moving Average which is placed at $1880 level. However, it holds a strong resistance near $1900-$1912 levels. LBMA Silver has capped its upside momentum near a resistance zone at $28.20-$28.75 levels. Support is at $27.10-$26.70 levels,” he added.

“Domestic gold and silver prices could start flat to marginally weaker this Thursday morning tracking overseas prices. On the domestic front, MCX Gold August is trading above Rs 49,000 levels where further could take Rs 49,200-49,350 levels. Support is at Rs 48,950-48,800 levels. MCX Silver July holds a support near Rs 71,000-70,100 levels. Resistance is at Rs 72,800-73,300 levels,” he added.

“Gold has been moving in a defined but exaggerated range between $1855 and $1910 over the last week. Our technical studies are indicating that there is real resistance for gold to move above $1900 on a sustained and closing basis. Concurrently the studies are indicating that there is strong support for gold at $1845.50, which is the current price of the 200-day moving average. Another noteworthy aspect is that the golden cross that was created on May 24 when the 50-day moving average crossed above the 100-day moving average continues to widen, which indicates that there is still bullish market sentiment. Coupled with the fact that gold prices have remained above the 200-day moving average since May 17, confirm that the volatility seen within gold pricing over the last week did not result in any major technical chart damage,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.

“Gold and Silver both are showing some selling pressure on daily candlestick chart, So traders are advise to create some short position near resistance levels and traders should also focus some important technical levels given below for the day: August Gold closing price Rs 49,124, Support 1 – Rs 48,900, Support 2 – Rs 48,700, Resistance 1 – Rs 49,300, Resistance 2 – Rs 49,500 July Silver closing price Rs 71,884 Support 1 – Rs 71,200, Support 2 – Rs 70,400, Resistance 1 – Rs 72,500, Resistance 2 – Rs 73,400,” he added.