Gold Price Today Trading Flat, Resistance at Rs 48,550. ‘Investors Must Go Short’

Gold price on Thursday was trading flat in India tracking the international peers. On the Multi-Commodity Exchange (MCX), August gold contracts marginally dropped 0.07 per cent to Rs 48,266 for 10 grams at 0905 hours on July 15. Silver, another precious metal, however, jumped in the domestic market on Thursday. September silver futures increased 0.08 per to Rs 69,468 a kilogram.

In the international market, gold prices were flat on Thursday. Spot gold was steady at $1,824.81 per ounce, as of 0050 GMT, according to Reuters. US gold futures edged up 0.1% to $1,826.40 per ounce. US Federal Reserve chair Jerome Powell said that the central bank would continue its accommodative monetary policy despite a recent spike in inflation readings. The high inflation readings over the past several months have been driven largely by temporary factors, notably supply shortages and rising consumer demand as pandemic-related business restrictions are lifted, said US Fed Reserve chief. Powell was upbeat about the economy, with growth on track to post its fastest rate of increase in decades.

“Powell, in prepared remarks before a congressional hearing, said the U.S. job market is still a ways off from the progress the Fed wants to see before reducing its support for the economy, while current high inflation will ease in the coming months. The dollar turned lower on Wednesday after the statement and lent support,” said Sriram Iyer, senior research analyst at Reliance Securities.

“International spot gold and silver prices have started flat to marginally higher this Thursday morning in Asian trade supported by a dovish Fed. Technically, LBMA Gold has given a sharp breakout where above $1825 level will continue its bullish momentum up to $1834-$1842 levels. Support is at $1820-$1813 levels. LBMA Silver above $26.40 level will continue its Bullish momentum & further could see $26.65-$27.20 levels. Support is at $26.10-$25.70 levels,” he added.

“Domestic gold and silver prices could start flat to marginally higher this Thursday morning, tracking overseas prices. On the domestic front, MCX Gold August has crossed Rs 48,000 levels with increased in volume activity where if sustain above Rs 48,200 could see upside momentum up to Rs 48,370-48,500 levels. MCX Silver September above Rs 69,000 levels could see a Bullish momentum up to Rs 69,900-70,900 levels. Support is at Rs 68,900-68,000 levels,” he further mentioned.

“Technically, the gold bulls have the overall near-term technical advantage and gained some more power today. A fledgling price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,791.00. First resistance is seen at today’s high of $1,831.10 and then at $1,840.00. First support is seen at today’s low of $1,804.90 and then at $1,800.00,” said Amit Khare, AVP — research commodities, Ganganagar Commodities Limited.

“Gold and Silver showing some profit booking in hourly technical chart. So traders are advise create short position in Bullion’s, traders should also focus important technical levels given below for the day: August Gold closing price Rs 48,299, Support 1 – Rs 48,000, Support 2 – Rs 47,800, Resistance 1 – Rs 48,550, Resistance 2 – Rs 48,777. September Silver closing price Rs 69,412, Support 1 – Rs 68,800, Support 2 – Rs 68,000, Resistance 1 – Rs 70,000, Resistance 2 – Rs 70,500,” he added.

“Gold registered a significant price hike yesterday after Fed’s chairman leaned dovish on monetary policy by mentioning that Fed is still a way off on tapering its bond-buying program and reiterated that rising inflation pressures are likely only transitory. Fed’s view that rising inflation is not so worrisome until they see substantial progress towards full employment will create a solid breakout scenario for yellow metal,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.

“Gold on MCX crossed all the resistance levels yesterday with volume and managed to closed at higher levels. We are bullish on gold and have continuously advised to accumulate gold from past few days, fledging price uptrend is clearly visible on technical charts which could very soon take safe heaven metal to Rs 49,000 zone. Key level for gold August contract – Rs 48,200. Buy zone above – Rs 48,200 for the target of Rs 48,430-48,600. Sell zone below – Rs 48,190 for the target of Rs 48,030-47,900,” he further mentioned.

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