Gold and silver prices traded mixed in the domestic futures market on Thursday (2 July) morning, amid largely positive global cues.
MCX gold August contracts were 0.21% down at ₹1,44,124 per 10 grams, while MCX silver September contracts were 0.54% up at ₹2,31,630 per kg around 9:05 am.
Prices of precious metals moved in opposite directions amid spot market demand, while global cues were largely positive.
Federal Reserve Chair Kevin Warsh’s comments that inflation risks had eased, coupled with softer-than-expected US jobs data, signalled that the US Fed may not opt for aggressive rate hikes this year. Warsh, however, emphasised that the Fed is committed to bringing inflation down to its 2% target.
Meanwhile, ADP’s national employment report showed that private employment in the US rose by 98,000 jobs in June, after an unrevised 1,22,000 increase in May. The June jobs data was below expectations as economists polled by Reuters had projected private employment to rise by 1,18,000.
The focus is now on June’s nonfarm payroll data, due today, for further cues on the Fed’s near-term monetary policy trajectory.
The dollar index remains above 101, keeping bullion expensive for buyers in overseas currencies.
On the other hand, crude oil prices declined further, with Brent crude trading below $71 per barrel after reports said the US and Iran concluded indirect talks on Wednesday in Doha, Qatar, focused on the Strait of Hormuz. Reports, however, added that there was little headway toward a deal to secure lasting peace in the region.
Gold and silver: Key levels to watch
As per Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,040 and $3,994, while resistance is at $4,122 and $4,164 per troy ounce, and silver has support at $58.80 and $57.40, while resistance is at $61.60 and $63.20 per troy ounce in today’s session.
MCX gold has support at ₹1,43,100 and ₹1,42,000 and resistance at ₹1,45,500 and ₹1,46,650, while silver has support at ₹2,26,600 and ₹2,22,500 and resistance at ₹2,34,400 and ₹2,38,000, said Jain.
Jain suggests booking profits in the long positions of gold and silver on every rise ahead of the U.S. non-farm payroll data.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, expects MCX gold August futures to appreciate to ₹1,45,000 per 10 grams, as the undertone in global markets is positive.
“Gold is expected to continue taking cues from rupee-dollar movements, US economic data, and overall global risk sentiment. Technically, the near-term trading range is seen between ₹1,40,000 and ₹1,42,500,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
