Gold price in India edged lower on Monday. On the Multi-Commodity Exchange (MCX), gold futures dropped 0.10 per cent to Rs 50,726 for 10 grams at 0905 hours on July 11. Silver futures tumbled 0.14 per cent to Rs 57,050 for a kilogram on Monday. Rising dollar have kept the yellow metal under pressure.
In the international market, spot gold price dipped 0.10 per cent $1,740.16 per ounce at 0045 GMT. US gold futures dipped 0.2 per cent to $1,739.50. The dollar steadied near its highest level in around 20 years. Benchmark US 10-year Treasury yields held near an over one-week high hit on Friday. The euro plunged to its lowest levels in the last two decades due to higher inflation, recession fears and energy crisis in the European Union.
Investors will keenly follow the United States Consumer Price Index numbers for June, scheduled this week. Economists said that consumer price numbers will hit a fresh 40-year high of 8.8 per cent in June, according to Reuters poll. The monthly core index is seen slipping, however, to 5.8 per cent from 6.0 per cent in May.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.11 per cent to 1023.27 tonnes on Friday from 1024.43 tonnes on Thursday.
Weakness in the rupee and recent hike in government import duty on gold supported prices in the domestic market.
Gold and Silver Price Outlook: What Analysts Say
“International spot and COMEX gold and silver prices have started marginally weaker on Monday morning in Asian trade as the dollar ticked higher, continuing to weigh on demand for bullion. Data from US CFTC showed that speculators cut net longs in COMEX gold by 19,831 contracts to 26,806, while speculators switched to net short position in COMEX silver of 8,309 contracts cutting to 9,301 in week to July 05. Today’s range of COMEX August gold is $1714.30-$1754.00. Domestic gold futures prices could start flat to marginally weaker on Monday morning tracking overseas markets. Today’s range of MCX August gold is Rs 50,100-51,045,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Today’s range of COMEX September silver is $18.732-$19.439. Domestic silver futures prices could start flat to marginally weaker on Monday morning tracking overseas markets. A slightly weaker rupee could cap downside. Today’s range of MCX silver September Rs 56,066-57,526,” Iyer added.
“Gold and silver suffered heavy losses in the first half of the last week and dropped to their weakest levels since September 2021. The broad-based dollar strength amid growing recession fears and the worsening demand outlook for the yellow metal caused precious metals to close in the negative territory for the fourth straight week. Gold has support at $1730-1717, while resistance is at $1752-1764. Silver has support at $19.05-18.80, while resistance is at $19.40-19.62. In INR terms gold has support at Rs 50,450–50,240, while resistance is at Rs 50,960–51,140. Silver has support at Rs 56,550-55,850, while resistance is at Rs 57,680–57,980,” said Rahul Kalantri, VP commodities, Mehta Equities Ltd.
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