01 Jun , 2021 By : Kanchan Joshi
Gold and silver prices edged higher today in Indian markets, supported by positive global cues. August gold futures on MCX were up 0.24% to Rs49,469 per 10 gram while silver futures jumped 1% to rs72575 per kg. In the previous session, gold had risen 0.45% and silver 0.42%. MCX gold has support at Rs48,450 and faces resistance around Rs49,360, say analysts.
In India, gold has rebounded from Rs44,000 hit earlier in March but the precious metals still remains down by Rs7,000 from August highs of Rs56,200.
Gold is being supported as an inflation hedge after US consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target, says Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services.
In international markets, gold edged higher to a near five-month high of $1,914.26 earlier in today's session, supported by a weaker US dollar and inflation concerns. Spot gold was up 0.2% at $1,911.45 per ounce in latest trade. The dollar index was down 0.26% against its rivals at 89.757, making gold less expensive for other currency holders, after registering its second consecutive monthly loss on Monday.
"Positive outlook remains intact as long as gold holds the support of $1875. However, immediate resistances are seen at $1925 followed by 1970 levels. A direct drop below $1845 would weaken the sentiment, but major downside reversal point is seen at $1810," domestic brokerage Geojit says in a note.
Among other precious metals, silver gained 0.6% to $28.22 per ounce while platinum climbed 0.5% to $1,192.22.
Technically, for silver, "breaking the $30 resistance is needed to trigger major rallies in the counter. Anyhow, important support is placed at $25.60 a sudden drop of which could negate further bullish attempt in prices," says Geojit.
Silver futures on MCX have support at Rs70,080 and resistance at Rs74200, say analysts.
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