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Gold Prices Today: Yellow metal to edge higher amid weak dollar and high fuel prices; buy on dips

Moneycontrol logo Moneycontrol 23-05-2022 Sandip Das
Gold Prices Today: Yellow metal to edge higher amid weak dollar and high fuel prices; buy on dips © Moneycontrol Gold Prices Today: Yellow metal to edge higher amid weak dollar and high fuel prices; buy on dips

Gold prices touched a more than one week high on Monday in international markets as an easing dollar continued to support greenback-priced bullion although higher US Treasury yields capped gains. Spot gold rose 0.2 percent to $1,848.96 per ounce by 0201 GMT.

At 9:35am, gold contracts were up 0.3 percent at Rs 50,984 for 10 gram on the Multi-Commodity Exchange (MCX) while silver added 0.49 percent at Rs 61,705 a kilogram.

Gold prices traded higher on Monday with spot gold prices at Comex trading around half a percent up near $1854 per ounce. Gold prices continued upside on weaker dollar which fell below 103 on Monday. Economic growth worries and higher fuel prices may support yellow metal as inflation hedge, said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

"We expect gold prices to trade up with Comex spot gold support at $1820 and resistance at $1870 per ounce. MCX Gold June support lies at Rs 50600 and resistance at Rs 51200 per 10 gram," he said.

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Rahul Kalantri, VP Commodities, Mehta Equities

Gold prices snapped a four-week losing trend, managing to close on a higher note. Last week gold prices gained around two percent while silver prices recovered around six percent from their lows amid a fall in the dollar index and US bond yields. Last week, the dollar index witnessed a steep fall after failing to sustain around the fresh 19 year high at 105. The index eased more than two percent from recent highs and US 10-year bond yields also cooled off and slipped below 2.80 percent. Bullion prices also got support from weak US data. Unemployment claims rose again and existing home sales and the Philly Fed manufacturing index disappointed.

This week investors’ focus will remain on the release of the Fed Open Market Committee (FOMC) report, which is due on Friday. Gold has support at $1832-1820 while resistance is at $1858-1870. Silver has support at $21.48-21.20 while resistance is at $22.10-22.38. In rupee terms gold has support at Rs 50,640–50,410 while resistance is at Rs51,140–51,350. Silver has support at Rs 61,010-60,750 while resistance is at Rs 62,350-62,610.

Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart

Due to continued selling pressure in global stock markets, investors have turned towards precious metals. Gold and silver have registered an increase after a month of continuous decline. The dollar has retreated from two-decade highs and rising concerns over US economic growth have turned investors to safe-haven assets. However, the US Federal Reserve's aggressive rate hikes and balance sheet cuts will still offer major resistance to gold's bullishness. The cut in the five-year loan prime rate by the People's Bank of China has supported the prices of industrial metals and crude oil, which has also boosted the prices of the precious metals last week.

On MCX, a pullback can be seen so buying can be initiated at lower levels where gold has resistance at Rs 51100 and support at Rs 50500. Silver has resistance at Rs 62300 and support at Rs 60500.

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

Gold and silver prices showed mixed movement on May 20 on the Multi-Commodity Exchange (MCX); June gold contracts closed up by 0.56 percent at Rs 50,829 for 10 grams. July contract Silver futures closed at Rs 61,407 a kilogram, down 0.26 percent. As per technical chart, gold and silver are making bottom and we can see a huge short covering rally in the coming future; momentum indicator RSI is also indicating the same on the hourly as well as daily chart. Traders are advised to create fresh buy positions near given support levels and should focus on important technical levels.

June Gold closing price Rs 50829, Support 1 - Rs 50700, Support 2 - Rs 50500, Resistance 1 - Rs 51000, Resistance 2 - Rs 51250.

July Silver closing price Rs 61407, Support 1 - Rs 61000, Support 2 - Rs 60600, Resistance 1 - Rs 62000, Resistance 2 - Rs 62500.

Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​

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