Gold prices fell in early trade in the Indian market on May 28, mirroring the yellow metal's weakness globally. Gains in equities also dented the appeal of the safe-haven asset.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading lower by 0.31 percent at Rs 48,429 for 10 grams at 1025 hours. July silver futures were trading 0.55 percent lower at Rs 71,325 a kilogram.
The yellow metal prices were subdued in the global markets due to the rise in the dollar and US treasury yields. The dollar's rise makes buying gold expensive, whereas an uptick in US treasury yields makes holding the metal expensive.
Healthy gains in Indian equities also dented gold prices. Market benchmark Nifty hit a new all-time high in morning trade with banks, metals and energy counters leading the gains.
Gold and silver showed extreme volatility on May 27 amid a rebound in benchmark 10-year bond yields and a decline in unemployment claims in the United States. Both the precious metals settled on a mixed note.
Manoj Kumar Jain, Director, Head-Commodity & Currency Research at Prithvifinmart Commodity Research expects both precious metals to remain volatile on May 28 ahead of the US personal income and personal spending data and expected to hold support levels.
"Gold is having support at $1,884-1,872 per troy ounce and resistance at $1,904-1,914 per troy ounce. Silver is having support at $27.70-27.40 per troy ounce and resistance at $28.30-28.66 per troy ounce," he said.
On MCX, gold has support at Rs 48,350-48,180 and resistance at Rs 48,800-49,050. For silver, support is at Rs 71,200-70,700 and resistance at Rs 72,400-73,000, Jain.
Jain suggests buying in gold around Rs 48,500 with a stop loss of Rs 48,180 for the target of Rs 49,000 and in silver around Rs 71,300 with a stop loss of Rs 70,700 for the target of Rs 73,000.
Technical indicators
Sriram Iyer, Senior Research Analyst at Reliance Securities
LBMA gold Spot has bounced back from the $1,888 level where breakout above $1,900 could see a bullish momentum up to $1,914-$1,923 levels. Support is at $1,885-$1,874 levels.
LBMA silver holds a hurdle near the $28.30 level below which could see sideways momentum. However, a strong breakout could take prices up to $28.66-$29.20 levels. Support is at $26.95 $26.30 levels.
MCX June gold could trade sideways to marginal upside momentum up to Rs 48,700-48,900 level. Support is at Rs 48,500-48,350 levels.
IF MCX July silver sustains above Rs 71,000, it can take prices up to Rs 71,900-72,700. Support is at Rs 70,800-70,000 levels.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
Comex gold was trading mixed near $1,895/oz after a 0.3 percent decline the previous day. Some stability in the equity market and US dollar, after recent losses, has made gold vulnerable to profit-taking.
ETF investors have also moved to the sidelines. However, supporting price is virus concerns, loose monetary policy stance of major central banks and mixed economic data from major economies.
Gold may witness choppy trade, however, bias may be on the downside if the dollar recovers.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Gold Price Today: Yellow metal trades lower amid gains in equities, support exists at Rs 48,500-48,350 - Moneycontrol.com
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