Gold and silver prices fell in Indian markets on Friday, due to weak global indices. June gold futures were at Rs 46,759 per 10 grams, down Rs 79 or 0.17% from the previous close of Rs 46,838. Silver May futures were also trading low at Rs 67,235 per kg, down Rs 266 or 0.39 percent, from a previous close of Rs 67,501 on the Multi Commodity Exchange. Both MCX gold and silver have experienced volatility since they hit their respective highs in August 2020. MCX gold had hit an all-time high of Rs 56,191 per 10 grams. While MCX silver hit a record high of Rs 77,949 per kg on August 7, 2020. From a record high, gold prices plunged Rs 9,432 per 10 grams or 16.78 percent. MCX money fell 14% to Rs 10,714 per kg.
Globally, gold held close to a more than a month high hit in the previous session. Spot gold was flat at $ 1,755.91 an ounce, after peaking since March 1 at $ 1,758.45 an ounce on Thursday. As US gold futures fell 0.1% on Friday to $ 1,756.20 an ounce, according to Reuters. Comex Gold held above the five-week high of $ 1.755 an ounce amid dollar weakness in tandem with US Treasury yields, which retreated from all-time highs over a year, said Jigar Trivedi, fundamental research analyst, Anand Rathi Shares and Stock Brokers. “A correction can take place in the general feeling of intraday buying is still bullish in the yellow metal,” he said.
Sriram Iyer, Senior Research Analyst at Reliance Securities
Technically, MCX Gold June broke above Rs 46,700 levels at the close on Thursday, indicating the positive trend to continue to Rs 47,100-47,400 per 10 grams. While MCX Silver May closed above Rs 67,000 per kg on Thursday and could see upward momentum to Rs 67,900-69,000 per kg.
Rajesh Palviya, Manager – Technical Research and Derivatives, Axis Securities Ltd
March’s non-farm payroll was surprisingly strong last month. If the current favorable trend in the US labor market continues, gold could struggle. However, this week, US employment data was negative, causing the US dollar index to fall and US bond yields to drop; implying a rise in the price of gold. In MCX Gold, the sharp rise in prices was mainly due to the fall in the Indian rupee, it fell more than 2% in 2 days after RBI showed concerns about the economy and the spread of the corona virus in the country. Technically speaking, the MCX gold trend in June could continue as prices are seen forming a channel and it takes support at the lower bound at 44,000 levels, we expect prices to rise towards 48,500 levels in the coming days.
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