Gold prices on Tuesday increased marginally. On the Multi-Commodity Exchange (MCX), gold futures increased 0.09% to Rs 48,565 for 10 grams at 1100 hours IST. However, silver continued to drop on June 15. July silver futures were trading 0.76 per cent lower at Rs 71,330 a kilogram.
In the international market, gold prices on Tuesday fell for a third straight day, as an uptick in the dollar dented the safe-haven metal’s appeal. Spot gold was down 0.1% at $1,864.82 per ounce, as of 0442 GMT, after falling to its lowest since May 17 at $1,843.99 on Monday. US gold futures eased 0.1% to $1,866.70, Reuters reported.
“International spot gold and silver prices have started weaker on Tuesday morning in Asian trade as speculators continued to remain away from the markets ahead of this week’s US Federal Reserve policy meeting. Technically, LBMA Gold Spot broke below its 21 Daily Moving Average at $1885 level and could remain weak to test $1852-$1844 levels. Resistance is at $1869-$1878 levels. LBMA Silver below $28.00 will continue its bearish momentum and could see further downside movement up to $27.20-$26.70 levels. Resistance is at $28.10-$28.55 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
Domestic gold and silver prices could start weaker on Tuesday morning, tracking overseas prices. On the domestic front, if MCX Gold August trades below 48500 levels we could witness a continuation of Bearish momentum up to Rs 48,350-48,000 levels. Resistance is at Rs 48,600-48,800 levels. MCX Silver July holds a support near Rs 71,100-70,500 levels. Resistance is at Rs 72,000-73,200 levels, Iyer added.