Bullion futures opened lower on Monday as profit booking seemed to stall gold’s progress after the weekend rally.
On the MCX, the August contracts that closed at a record Rs 30,105 for 10 gm on Saturday, dropped by half a per cent to Rs 29,922. July contracts slid to Rs 29,748 (Rs 29,917) and June contracts to Rs 29,691 (Rs 29,860).
In Singapore, gold was quoted 0.31 per cent lower at $1,621.40 a troy ounce, while the US gold futures were unchanged at $,1623.
Silver August contracts slid to Rs 55,436 a kg from Rs 55,891, while June contracts dipped to Rs 54,036 (54,505) and November to Rs 57,000 (Rs 57,437).
Spot gold prices on Saturday hit a record Rs 30,030 for 10 gm. However, the surge only led to all-round selling.
According to Angel Commodities, gold August contracts are likely to find support at Rs 29,680-28,620 and below that at Rs 29,200-29,150.
The yellow metal will face resistance at Rs 30,520-30,560 levels.
SMC brokerage said in a bulletin that Rs 28,200 can be the stop loss point for gold and Rs 55,500 for silver.
According to Mr Prithivraj Kothari, President of the Bombay Bullion Association, gold’s new mark on Saturday led to sale of jewellery and investments. Some exchanged old jewellery for new.
While gold could rise to Rs 32,000 levels, the monsoon could provide further direction to the yellow metal. If the monsoon fails or is below normal, it could affect crop prospects and, in turn, trigger buying of gold, especially in the rural areas.
With just two auspicious days for marriage this month, demand is likely to be limited.
mrsubramani@thehindu.co.in