Gold and Silver - July 27, 2021 - Reliance Securities
(Time Zone: UTC)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold settled beneath the key $1,800/ounce mark on Monday ahead of the Fed meeting this week.
International spot silver ended flat on Monday.
However, markets remained range bound on Monday in a small trading band.
Domestic gold prices ended weaker, while silver ended flat on Monday, in a range bound trading session.
Bullion prices remained subdued despite a weaker Dollar and subdued bond yields despite a softer than expected New Home Sales report.
The Federal Open Market Committee may not make policy changes for July, but more details could likely emerge on the tapering discussions that started in June.
The Fed aside, investors will also get a first look at 2nd quarter US GDP which is expected to show the peak of post-pandemic recovery.
Expectations have been trimmed back in recent weeks; but growth is still expected to be strong at 8.6% annualized.
Meanwhile, later this week, figures on personal income and spending are due this week, which include the Fed's favourite measure of inflation, the core personal consumer expenditure price index.
Across the Atlantic, the euro zone is to release a slew of data, including reports on inflation, GDP and unemployment.
International spot gold and silver prices have started flat this Tuesday morning in Asian trade.
Technically, LBMA Gold could bounce back from $1790 level and another trade above $1800 level could push prices up to $1811-$1817 levels. Support is at $1790-$1780 levels.
LBMA Silver could trade within the range of $24.70-$25.50 levels.
Domestic gold and silver prices could start flat this Tuesday morning, tracking overseas prices.
On the domestic front, MCX Gold August holds a support near 47300-47100 levels. Resistance is at 47700-47900 levels.
MCX Silver September holds resistance near 67300-68000 levels. Support is at 66700-65900 levels.
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