Gold Price June 2: Expert says buy gold on dips around Rs 49180 with a stop loss of Rs 48950, target of Rs 49600

Gold price today 2/6/2021: Prithvi Commodities says Gold and silver showed extreme volatility on Tuesday and better than U.S. ISM manufacturing PMI data triggered profit taking in both precious metals at higher levels. Both the precious metals were settled on a mixed note in the international markets. Gold August futures contracts were settled at $1905.00 per troy ounce with a loss of 0.02% and silver July futures contracts were settled at $28.10 per troy ounce with a gain of 0.33%. Due to weakness in the rupee both the precious metals were settled on a positive note in the domestic markets. Gold August futures contracts were settled at Rs 49425 per 10 gram with a gain of 0.15% and silver July futures contracts were settled at Rs 72248 per one kilogram with a gain of 0.49%.
 
Gold prices scored five months high in early trading yesterday and silver also gained but following better than expected U.S. ISM manufacturing PMI data mild profit taking is observed in both the precious metals from higher levels. However, weakness in the dollar index supported the prices at lower levels. Tuesday, the Institute for Supply Management (ISM) said its manufacturing Purchasing Managers Index (PMI) showed a reading of 61.2% for May, up from April’s reading of 60.7%. The data was better than expected, as consensus forecasts called for a roughly unchanged reading. This figure indicates expansion in the overall U.S. economy for the 12th month in a row after a contraction in April 2020. Despite better than expected data the dollar index slipped again and supported both the precious metals. Inflation concerns and strength in the basket of currencies pushed the dollar index lower, says Prithvi Commodities.

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Prithvi Commodities expects both the precious metals to remain volatile in today’s session and continue to hold their support levels. Gold is having support at $1894-1884 per troy ounce and resistance at $1914-1933 per troy ounce; silver is having support at $27.88-27.55 per troy ounce and resistance at $28.40-28.70 per troy ounce. At MCX, gold is having support at Rs 49180 – Rs 48980 and resistance at Rs 49660 – Rs 49850; silver is having support at Rs 71700 – Rs 71200 and resistance at Rs Rs 73300 – Rs 73800 levels. Prithvi Commodities suggests buying in gold on dips around Rs 49180 with a stop loss of Rs 48950 for the target of Rs 49600 and silver around Rs 71700 with a stop loss of Rs 71100 for the target of Rs 73300.