The price of gold in India saw a huge drop on Monday. The yellow metal opened to red on 6 September. On the Multi-Commodity Exchange (MCX), October gold for 10 grams closed down 0.16 per cent at Rs 47,449 at 0910 hrs. However, silver remained stable on Monday. On September 6, the precious metal futures were trading at Rs 65,241.
On Monday, the price of gold in the international market was around the peak of two and a half months. Spot gold was stable at $1,826.65 an ounce as of 0048 GMT. US gold futures GCv1 fell 0.3 per cent to $1,828.60, Reuters reported. As of the date published by the US Department of Labor, US non-farm wages increased by 235,000 jobs last month. The US dollar index was at its lowest level since August 4. Gold is considered a hedge against inflation and currency depreciation, largely due to stimulus measures.
“International gold prices are flat on Monday morning in Asian trade, but disappointing US jobs data indicated that the Federal Reserve may push back the timeline to ease stimulus measures and halt the decline in bullion. Technically, there is a breakout for LBMA Gold above the $1823 level to the $1835-$1858 level. However, a downside pressure could be seen below the $1817 level towards the $1810-$1800 level. LBMA Silver can see the $25.10-$25.44 level above $24.00. Support lies at the $23.20-$22.70 level,” said Sriram Iyer, Senior Research Analyst, Reliance Securities.
“Keeping an eye on overseas prices, domestic gold prices may start flat on Monday morning. MCX Gold has strong support near Rs 47,350-47,200 levels for October. Resistance is near Rs 47,550-47,700 level. On MCX, silver can come in the level of Rs 65,600-66,100 above Rs 65,000 in December. Support is at Rs 64,500-63,700 level. MCXbuldex September 14,200-14,450 can trade in the range of Rs.
“Gold prices edged higher with significantly lower job data and the verge of breaking the key resistance range of $1835-$1845/oz. The tepid job data count clearly indicates,” said Sandeep Matta, Founder, TRADEIT Investment Advisor suggests that economic growth on consumer demand has taken some steps back and has a delta variant effect on global economies.”
“Gold has also closed positive on MCX while closing above 47500 is encouraging. Bulls take technical medium-term gains on the bears due to weak economic growth, currency weakening and dovish Fed commentary. The overall outlook and setup is positive for today and market participants are advised to follow below key key levels. Key Level for Gold August Contract – Rs 47,386
Buy area – Rs 47,375 with target of Rs 47,737-47,950. Sell zone below – Rs 47,375 target Rs 47,200-47,040,” said Matta.
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