Gold, silver prices today: Rates of gold and silver rose in the domestic futures market on Monday (22 June) morning, largely due to value buying after media reports suggested progress in US-Iran peace talks.
However, an uptick in the US dollar and 10-year bond yields amid hawkish signals from the US Federal Reserve capped gains for precious metals.
MCX gold August futures were 0.29% up at ₹1,47,637 per 10 grams, while MCX silver July futures were 0.88% up at ₹2,35,226 per kg around 9:10 am.
According to news agency Reuters, an Iranian foreign ministry spokesperson said that the first round of talks between the US and Iran in Switzerland concluded with good progress on Monday.
The are set to continue throughout the week. During the discussions, Iran and the US agreed to establish a “de-confliction cell” focused on addressing the ongoing violence in Lebanon.
Meanwhile, the dollar index climbed by 0.10% to 100.88, making greenback-denominated bullion expensive for overseas buyers. The benchmark US 10-year Treasury yield rose to 4.49% from its previous close of 4.46%, further weighing on gold prices.
Both the dollar and US bond yields rose after Federal Reserve Chair Kevin Warsh, in last week’s press conference, underscored the risk of inflation, fueling apprehensions that a rate hike may be possible this year.
“A stronger US dollar and the Federal Reserve’s hawkish outlook continued to weigh on bullion prices, overshadowing support from easing Middle East tensions and progress towards a US-Iran agreement. Higher Treasury yields and expectations of elevated interest rates have reduced the appeal of non-yielding gold, keeping the broader trend weak,” Ravi Singh, Chief Research Officer at Master Capital Services, noted.
Gold and silver: Key levels to watch
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said MCX gold August futures may appreciate to ₹1,48,000 per 10 grams amid a bullish global sentiment. On the flip side, ₹1,47,200 is a floor.
Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold and silver on dips until gold is holding ₹1,44,000 and silver is holding ₹2,24,000 on a closing basis.
Jain expects a dead cat bounce in gold towards ₹1,50,000 to 1,51,100 and in silver towards ₹2,41,000 to ₹2,44,000 this week.
As per Jain, gold has support at $4,140 and $4,100, while resistance is at $4,200 and $4,235 per troy ounce, and silver has support at $62.55 and $61.40, while resistance is at $66.80 and $69.10 per troy ounce in today’s session.
MCX gold has support at ₹1,46,100 and ₹1,44,400, and resistance is at ₹1,48,800 and ₹1,50,000, while silver has support at ₹2,30,000 and ₹2,26,600, and resistance is at ₹2,37,000 and ₹2,41,000, said Jain.
According to Singh, immediate support for MCX gold is placed near ₹1,46,300, and a breach below this level could extend the decline towards ₹1,40,000. On the upside, ₹1,51,000 is likely to act as the first hurdle, while the ₹1,53,000 to ₹1,54,000 zone remains a major resistance area.
“Until prices reclaim these levels, a sell-on-rise approach may remain favourable,” said Singh.
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Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.