Gold and Silver - August 3, 2021 - Reliance Securities
(Time Zone: UTC)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices rebounded from the lows of the session to end flat on Monday.
Subdued dollar and weak bond yields helped markets.
Domestic gold and silver prices were flat on Monday, tracking subdued overseas prices.
The 10-year Treasury yield briefly slipped below 1.15%, trading at its lowest level since February amid slightly weak U.S. data on Monday.
The Institute for Supply Management's July manufacturing index fell to six-month low due to broad shortages and construction spending was up 0.1% in June.
Speculation remains around the timing of when the Federal Reserve will lay out a timetable for tapering its program of monthly asset purchases.
The main event on the U.S. economic calendar comes Friday, with the release of the July jobs report.
International gold and silver prices have started flat to weak this Tuesday morning in Asian trade and will track the movements of the dollar and bond yields.
However, as the delta variant threat continues to worsen, any weakness will continue to weigh on U.S. yields and help buoy gold prices.
Technically, if LBMA Gold trades below $1818 level we could witness the Bearish momentum to continue up to $1805-$1795 levels. Resistance is at $1812-$1820 levels.
LBMA Silver holds a resistance of 21-Daily Moving Average at $25.65 below which could see a downside move up to $25.10-$24.30 levels. Resistance is at $25.77-$26.00 levels.
Domestic gold and silver prices could start flat to weak this Tuesday morning, tracking subdued overseas prices.
Technically, MCX Gold October is below the resistance near 48000 and a sustained below could continue keep prices subdued up to 47800-47600 levels. Resistance is at 48100-48250 levels.
MCX Silver September holds a resistance 68200-69000 levels. Support is at 67100-66700 levels.
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