Gold and silver futures have continued to rise, reaching one-month high levels amid falling US inflation rates and the dollar index slipping to a 15-month low which boosted the appeal of bullion. The August gold futures on the MCX climbed to INR59,285 ($796) per 10 grams, while September silver futures were up 0.34% to reach INR75,585.
"Gold is expected to trade with a positive bias, though yield volatility may pose a risk. In addition, gold with respect to yields is overextended. Real interest rates are climbing up. Bulls set their eyes on $1980. Support is seen at $1,950/$1,937," Singh said.
Dollar indexs fall augurs well for the yellow metal in the short term and investors can look to buy gold and silver futures now, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said.
The August gold futures were trading at Rs 58,705 per 10 grams on the MCX around 9:10 am and were down by Rs 77 or 0.13% from the Friday closing price. Meanwhile, September Silver futures were trading at Rs 71,131, lower by Rs 179 or 0.25%.
From a technical standpoint, the market is experiencing strong bullish momentum, Santosh Meena, Head of Research at Swastika Investmart, said. "The levels around 19,500–19,600 may act as an immediate supply zone. If this zone is surpassed, the next target levels would be 19,770 and 20,000. On the downside, a slip below the 19,300 level in the Nifty index could trigger profit booking, potentially leading to a decline toward the support levels at 19,100 and 18,888," Meena said