Gold, Silver Price June 16: Expert recommends BUY on precious metals, check key reasons and price targets here

Gold price today 16/6/2021: Prithvi Commodities said that Gold and silver plunged again ahead of the U.S. Federal Reserve meeting outcomes on Tuesday. Both the precious metals were settled on a weaker note in the international markets. Gold August futures contract settled at $1856.40 per troy ounce with a loss of 0.51% and silver July futures contract were settled at $27.69 per troy ounce with a loss of 1.24%. Both the precious metals were also settled on a weaker note in the domestic markets. Gold August futures contracts were settled at Rs 48424 per 10 gram with a loss of 0.20% and silver July futures contracts were settled at Rs 71248 per one kilogram with a loss of 0.88%.

The dollar index traded steady ahead of the U.S. Federal Reserve policy meeting outcomes while benchmark 10-year bond yield climbed again and crossed 1.50% during the session. Gold slipped to one-month lows on Tuesday amid rising PPI in the United States in the month of May. 

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The May producer price index came higher than expected, up at 0.8% from April and up 6.6%, year-on-year. PPI was expected to come in up at 0.5% from April. Higher than expected PPI is the indication that the U.S Federal Reserve could raise interest rates sooner than later. Retail sales reading for the month of May is also disappointing and it is down by 1.3% against expected reading of down at 0.6% from April. 

Prithvi Commodities expects both the precious metals remain volatile in today’s session and gold prices are at make-or-break levels if it breaks its crucial support of $1850 per troy ounce could show further weakness in upcoming sessions.

Prithvi Commodities expects gold to hold its support levels on a closing basis. Gold is having support at $1850-1834 per troy ounce and resistance at $1868-1884 per troy ounce; silver is having support at $27.40-27.00 per troy ounce and resistance at $28.00-28.40 per troy ounce. 

At MCX, Gold is having support at Rs 48180 – Rs 48000 and resistance at Rs 48660 – Rs 48880; silver is having support at Rs 70900 – Rs 70400 and resistance at Rs 71700 – Rs 72200 levels. Prithvi Commodities suggest buying in gold on dips around Rs 48200 with a stop loss of Rs 47950 for the target of Rs 48660 and in silver around Rs 70700 with a stop loss of Rs 70200 for the target of Rs 71800.