Gold Price Prediction: Yellow metal tumbles Rs 2,800/10 gms amid US-China trade uncertainty. How to trade
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Gold has support at Rs 96,600-96,180 and resistance at Rs 97,700-98,200
Silver has support at Rs 1,06,000-1,04,800 and resistance at Rs 1,08,000-1,09,400
Operating under pressure, Gold June futures contracts at MCX opened lower by Rs 723 or 0.74% at Rs 96,397/10 grams after ending on a positive note in the previous session.The prices of the yellow metal have now fallen by Rs 2,800/10 grams, from its recent high of Rs 99,214/10 grams. Meanwhile, silver July futures contracts, opened slightly lower by Rs 563 or 0.53% at Rs 1,06,524/kg, after hitting a new all-time high of Rs 1,07,171/kg.On Monday, gold and silver settled on a positive note in the domestic and international markets. Gold August futures contract settled at Rs 97,173 per 10 grams with a gain of 0.14%, and silver July futures contract settled at Rs 1,07,087 per kilogram with a gain of 1.54%.Gold and silver prices showed high volatility at the start of a new week. Gold prices plunged in the early trading session amid talks resuming between the US and China in London to cement a trade deal between the two largest economies, but prices rose off day's low amid weakness in the dollar index and US bond yields.Gold prices also reversed after the Chinese central bank turned into a net buyer of gold for the seventh consecutive month in May.'Investors are also looking cautious and betting for a safe-haven bid in gold amid uncertainty on the final trade deal between US-China,' noted Manoj Kumar Jain of Prithvifinmart Commodity Research.Silver prices remain at their 13-year highs amid a weaker dollar and strength in other industrial metals.Today, the US Dollar Index , DXY, was hovering near the 99.15 mark, gaining 0.20 or 0.20%.'We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and ahead of the U.S. inflation data; gold prices could hold its support level of $3,240 per troy ounce and silver prices could also hold $34.00 per troy ounce levels on a weekly closing basis,' he added.Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:Jain suggests buying silver around Rs 1,06,500-1,06,000 with a stop loss of Rs 1,04,800 for the target of Rs 1,07,700-1,08,500.Meanwhile, Rahul Kalantri, VP Commodities of Mehta Equities, noted that gold has support at Rs 96,720-96,390 while resistance is at Rs 97,350-97,640. Silver has support at Rs 1,06,160-1,05,250 while resistance is at Rs 1,08,750-1,09,650.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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