Bullion futures stage recovery

Bullion futures recouped their losses on Friday and were up in the second session on the Multi Commodity Exchange of India (MCX) on short covering in the London market, traders said.

Local as well as global prices are seen weak in the rest of the session today on profit sales.

In the first session, MCX August gold futures were down tracking the movement in other Asian markets.

The August contract opened at Rs 9,445 and tested an intra-day high of Rs 9,621 per 10 gm and a low of Rs 9,445.

"Selling pressure is seen, as the US economic data is likely to favour the dollar," said a senior research analyst at IL&FS Investsmart.

Markets are keenly awaiting the release of US non-farm payroll and unemployment data, scheduled to be released later today. May non-farm payroll figure is expected to rise to 1,80,000 compared with April's 1,38,000. The rate of unemployment is expected to remain unchanged from April's 4.7 per cent.

In the first session, MCX July silver contract was weak, tracking the movement in gold prices.

Silver prices are also expected to fall, tracking the movement of gold in the rest of the trading session.

At 1715 IST, July silver contract was at Rs 18,737 per 1 kg, up 1.23 per cent.

According to a report by IL&FS Investsmart, resistance for MCX August gold for delivery is seen at Rs 9,764 per 10 gm and support at Rs 9,444.

Resistance for MCX July silver contract is seen at Rs 19,068 per kg and support at Rs 18,058, the report said.