On Monday, domestic gold prices extended gains as global gold prices touched more than one-week high, supported by an easing dollar while higher US Treasury yields kept the upper mark in check.
The rupee, supported by strength in equities and weak dollar, climbed higher to 77.66 against the US dollar on Monday.
MCX gold futures for June delivery were up by Rs 301 or 0.6 percent to Rs 50,845 per 10 gm as of 0900 hrs. MCX silver futures didn't follow suit and were down by 0.23 percent or Rs 143 to Rs 61,421 per kg.
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Spot gold prices were up by $7.41 or 0.40 percent to $1,854.08 as of 0915 hrs. Domestically, the price for spot gold rose by Rs 321 or 0.22 percent to Rs 144,008.
"We expect both precious metals to remain volatile this week and continue to hold their respective support levels. Weakness in global equity markets and fear of slower economic growth could support safe haven buying of precious metals," said Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart.
Jain suggested buying gold on dips around 50,550 with a stop loss of 50,330 on a daily closing basis for the target of 51,100 and silver around 61,100 with a stop loss of 60600 on daily closing basis for the target of 62,400.
The dollar index — which gauges the strength in greenback against six peers — started the week low, down by 0.43 percent, at 102.73.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said that this week, investors’ focus will remain on the release of the Fed Open Market Committee (FOMC) report, which is due on Friday.
Kalantri sees a support for gold at $1832-1820 and resistance at $1858-1870. While for silver, he sees support at $21.48-21.20 and resistance is at $22.10-22.38. "In INR terms gold has support at Rs 50,640–50,410, while resistance is at Rs51,140–51,350. Silver has support at Rs61,010-60,750, while resistance is at Rs62,350–62,610," he added.
