Gold prices in India rose on Wednesday for the second consecutive day. On the Multi-Commodity Exchange (MCX), August gold contracts slumped 0.16 per cent to Rs 47,968 for 10 grams at 0930 hours on July 14. Silver was trading flat on Wednesday. September silver futures were trading 0.02 per cent higher at Rs 69,096 a kilogram.
In the international market, gold prices slumped on Wednesday on the back of a firm dollar. Spot gold was flat at $1,806.07 per ounce, as of 0057 GMT. US gold futures were 0.2% lower at $1,807.20 per ounce, according to Reuters. US Consumer Price Index (CPI) hiked 0.9 per cent in June, the highest in last 13 years. It increased 5.4 per cent year-on-year amid semiconductor shortage and pandemic-related restrictions.
“International spot gold and silver prices have started the Wednesday morning on a flat note weighed down by a firm dollar as investor focus shifts to Fed Chairman Jerome Powell’s testimony before Congress this week. Markets will eye for any hints on the central bank’s monetary policy outlook. Technically, LBMA Gold could trade in sideways to marginal upside momentum where support is at $1799-$1787 levels. Resistance is at $1813-$1822 levels. LBMA silver above $26.40 level will continue its bullish momentum & further could see $26.65-$27.20 levels. Support is at $25.70-$25.45 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver futures could start flat to weaker Wednesday morning, tracking subdued overseas prices. Technically, MCX Gold August holds a strong support near Rs 47,800-47,600 levels. Resistance is at Rs 47,900-48,100 levels. If MCX Silver September trades above Rs 69,000 levels, we could witness a continuation of the bullish momentum up to Rs 69,900-70,900 levels. Support is at Rs 68,900-68,000 levels,” he added.