Gold and silver price in India saw a huge drop on Thursday, tracking their international peers. The price of the precious metals remained under pressure throughout the week. On the Multi-Commodity Exchange (MCX), October gold contracts tanked 0.26 per cent to Rs 46,918 for 10 grams at 0910 hours on Thursday. Silver future was trading at Rs 63,936, 0.38 per cent down on September 9. Globally, gold prices slumped near two-weeks low on Thursday as strength in the dollar and higher US Treasury yields outweighed the boost to bullion from deepening concerns about global economic growth.
Spot gold was settled at $1,789.39 per ounce by 0054 GMT, after touching its lowest level since August 26 in the previous session. US gold futures eased 0.1% to $1,790.80. The dollar was buoyed by cautious risk sentiment. Several Federal Reserve policymakers on Wednesday signalled that the US central bank remains on track to trim its massive asset purchases this year.
“Worries about a Delta variant-driven slowdown in economic growth have kept downside capped. New York Fed Bank President John Williams on Wednesday said that it may be appropriate for the Federal Reserve to start reducing the pace of its asset purchases later this year if the US economy continues to improve and weighed on prices. Investors eye the ECB meeting on Thursday for hints on whether it may roll back economic support. Additionally, investors also look to cues from jobless claims data on Thursday,” said Sriram Iyer, senior research analyst at Reliance Securities.
“International gold prices have started flat this Thursday morning in Asian trade. Technically, LBMA Gold has given a correction below $1790 level indicating for Bearish momentum to continue up to $1780-$1767 levels. Resistance is at $1797-$1812 levels. Domestic gold prices could start flat this Thursday morning, tracking overseas prices. Technically, MCX Gold October below Rs 47,000 level could see a bearish momentum up to Rs 46,920-46,750 levels. Resistance is at Rs 47,100-47,250 levels,” Iyer added.
On Silver price, analyst said, “International silver prices have started flat this Thursday morning in Asian trade. Technically, LBMA Silver holds a resistance of 50-DMA which is placed at $24.80 levels below which could see sideways to marginal downside momentum up to $23.50-$23.00 levels. Resistance is at $24.40-$25.10 levels. Domestic silver prices could start flat this Thursday morning, tracking overseas prices. Technically, MCX Silver December below Rs 64,500 level could see Rs 63,700-63,000 levels. Resistance is at Rs 65,700-66,000 levels.”
“Precious metal not only lost it gain but also fell below $1790/oz and worrisome for the bulls. After poor US employment data, treasury yield jumped as the market is anticipating that Fed can continue to tolerate rising inflation in near run. Negative job data in US coupled with the resurgence of COVID cases will be a short-term negative for the gold and therefore we advised investors to avoid making longs in gold until in cross and sustain $1840/oz in US market while traders can take positive based on below key pivot numbers. Key level for gold – Rs 46,975, Buy zone above – Rs 47,000 for the target of Rs 47,150-47,300, Sell zone below – Rs 46,960 for the target of Rs 46,804-46,736,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“A higher US dollar index this week is a negative outside market force working against the metals. The other key outside market yesterday sees Nymex crude oil futures prices higher and trading around $69.30 a barrel. Meantime, the yield on the benchmark US 10-year Treasury note is presently fetching 1.351 per cent,” said Amit Khare, AVP — research commodities, Ganganagar Commodities Limited.
“Now the technical chart are again showing some short covering rally in bullions. Momentum indicator RSI also indicating the same in hourly as well as four hourly chart, So traders are advised to create fresh buy positions in Gold and Silver in small dips near given support levels, traders should focus important technical levels given below for the day : October gold closing price Rs 47,038, Support 1 – Rs 46,800, Support 2 – Rs 46600, Resistance 1 – Rs 47,260, Resistance 2 – Rs 47465. December Silver closing price Rs 64,183, Support 1 – Rs 63,500, Support 2 – Rs 63,000, Resistance 1 – Rs 64,750, Resistance 2 – Rs 65,550,” he added.
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