New Delhi: Gold price in India on Wednesday dropped for the second consecutive day, tracking the global market. On the Multi-Commodity Exchange (MCX), October gold contracts jumped 0.55 per cent to Rs 47,350 for 10 grams at 0915 hours on August 25. Silver price also slumped on Wednesday. The precious metal future jumped 0.67 per cent to Rs 63,050 on August 24.
In the international market, gold prices dipped on Wednesday. Spot gold fell 0.4 per cent to $1,796.03 per ounce by 106 GMT, while US gold futures 0.6 per cent to $1,797.50, Reuters reported. The dollar index rose 1 per cent, making the safe-haven asset cheaper for other other currencies. Investors are keenly waiting for Federal Reserve Chair Jerome Powell’s speech this week at Jackson Hole, Wyoming. Fed Chair may share a possible guidance on tapering of the pandemic-era stimulus.
“Spot gold prices remained under pressure as the dollar rose ahead of the Powell’s speech at the Fed’s annual economic symposium. However, widening impact of the pandemic might continue to levy some support to the safe haven asset gold,” said Prathamesh Mallya, AVP- Research, non-agri commodities and currencies, Angel Broking.
“International gold prices and silver prices have started weaker this Wednesday morning in Asian trade as the dollar recouped some of its losses made over the last 2 trading sessions. Technically, LBMA Gold below $1795 level could see a some sideways to marginal downside momentum up to $1786-$1770 levels. Resistance is at $1805-$1820 levels. LBMA Silver above $23.50 level could see $24.10-$25.22 levels. Support is at $23.40-$22.65 levels. Domestic gold prices and silver prices could start weaker this Wednesday morning, tracking overseas prices,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Technically, MCX Gold October could see sideways momentum where support is at Rs 47,450-47,300 levels resistance is at Rs 47,700-47,850 levels. MCX Silver September above Rs 63,500 level could see Rs 64,000-64,900 levels. Support is at Rs 63,000-62,400 levels. MCXBULLDEX May could trade on Bullish note with in the range of Rs 14,150-14,400 levels,” Iyer added.
Gold and silver are making bottom. Momentum indicator RSI creating a positive divergence in Silver in daily as well as four hourly chart. So traders are advised to create fresh longs positions in gold and silver in small dips, traders should also focus important technical levels given below for the day: August Gold closing price Rs 47,612, Support 1 – Rs 47,400, Support 2 – Rs 47,200, Resistance 1 – Rs 47,780, Resistance 2 – Rs 48,000. September Silver closing price Rs 63,474, Support 1 – Rs 62,900, Support 2 – Rs 62,400, Resistance 1 – Rs 64,000, Resistance 2 – Rs 64,550,” said Amit Khare, AVP — research commodities, Ganganagar Commodities Limited.
“Gold is hovering around the $1800/oz level while lack of participation is clearly visible as the market participants awaits Fed chairman’s speech which could decide the price direction either side. Gold is still trading below 100 DEMA level which is at $1810 and a major technical resistance to cross,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
“Gold on MCX also traded moderately high throughout the day however volume action is not encouraging. The momentum indicators are higher and suggesting a profit booking from these levels therefore our outlook for today is negative. Key level for GOLD August Contract – Rs 47,605. Buy zone Above – Rs 47,610 for the target of Rs 47,738-47,864. Sell zone Below – Rs 47,605 for the target of Rs 47,400-47,200,” Matta added.
“Spot gold continued to hover above the $1800 level as lowering bets on early tapering of the expansionary monetary policy by US kept the prices elevated. Gold traded lower in the earlier week after the minutes of the US Federal Reserve policy meet held in July’21 hinted towards a tighter economic policy in the coming months which clouded the outlook for the bullion metals. However, the recent outbreaks of the new variant raised expectations of a delay by the US Central bank in withdrawing the stimulus measures in order to support their economy. Markets might remain cautious ahead of the key US economic data scheduled during the week for cues on FED’s stance in the months ahead,” Mallya added.