Gold price in India dropped again on Thursday, tracking the international peers. On the Multi-Commodity Exchange (MCX), October gold contracts tanked 0.09 per cent to Rs 47,847 for 10 grams at 0930 hours on August 5. Silver saw huge dip on Thursday. Silver future fell by 0.19 per cent to Rs 67,471 on August 5. In the international market, gold prices also tanked on Thursday. Spot gold fell 0.1% to $1,810.50 per ounce by 0110 GMT. US gold futures were down 0.1% at $1,812.40. Silver fell 0.1% to $25.33 per ounce, after touching a near three-week peak on Wednesday.
US Federal Reserve Vice Chair Richard Clarida hinted that the central bank could start cutting back on asset purchase program later this year. The benchmark US 10-year yields rose off their lows following Clarida’s comments, while the US dollar too recovered, reducing gold’s appeal. The US non-manufacturing activity index raced to 64.1 last month, the highest reading in the series’ history, from 60.1 in June. However, data also showed that US private payrolls increased far less than expected in July. Investors will now focus on US non-farm payroll report, due on Friday. Covid-19 cases worldwide surpassed 200 million.
“International spot gold and silver prices have started marginally in the red this Thursday morning in Asian trade after the dollar firmed and remarks from a top U.S. Federal Reserve official signalled the possibility of bringing forward policy tightening. Technically, if LBMA Gold trades below $1818 level we could see a Bearish momentum up to $1805-$1795 levels. Resistance is at $1812-$1820 levels.
Technically, LBMA Silver holds a resistance of 21-Daily Moving Average at $25.65 below which could see a downside move up to $25.10-$24.30 levels. Resistance is at $25.77-$26.00 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver prices could start marginally in the red this Thursday morning, tracking overseas prices. On the domestic front, MCX Gold October is holding resistance near Rs 48,000 below can take prices up to Rs 47,800-47,600 levels. Resistance is at Rs 48,100-48,250 levels. MCX Silver September holds a resistance Rs 68,200-69,000 levels. Support is at Rs 67,100-66,700 levels,” he added.
“The most active December 2021 Comex contract was trading up $0.20 and fixed at $1814.30. With only fractional gains today, yesterday’s high was most interesting. Upon the release of the ADP report, gold prices surged to $1835.90 yesterday before giving up almost all of its gains to close, in essence unchanged. Since the Federal Reserve uses the data from the labor department’s jobs report as a key data set used to shape monetary policy, market participants will focus intently on Friday’s numbers. With expectations anticipating an extremely strong jobs report if the report comes in as weak as today’s ADP report as we could expect the Federal Reserve to continue to maintain its extremely accommodative and dovish monetary policy, which would be bullish for gold prices,” said
Amit khare, AVP- Research Commodities, Ganganagar Commodities
Limited.
“Gold and silver are giving some positive signal on daily chart, momentum indicator RSI also indicating the same on hourly chart. So traders are advise to create fresh long position near given support levels, traders should also focus important technical levels given below for the day : August gold closing price Rs 47,892, Support 1 – Rs 47,500, Support 2 – Rs 47,250, Resistance 1 – Rs 48,220, Resistance 2 – Rs 48,600. September silver closing price Rs 67,601, Support 1 – Rs 66,700, Support 2 – Rs 66,000, Resistance 1 – Rs 68,450, Resistance 2 – Rs 69,270,” he added.
“The 200 DEMA capped rallies as precious metal was hit with some selling pressure and gets hammered again around $1835 levels and closed mostly unchanged. Gold gave up all of its daily gains as momentum in the service sector was stronger than expected in July, basis latest data from the ISM. Gold on MCX also gave up all its day gain and closed below 48000 levels. The counter is stuck to the range and is going to be sensitive to momentum indicators, currency, bond yield and economic growth numbers while its inability to hold gain is worrying. The outlook for the today for precious metal is slightly bearish due to out performance of Indian equity market. Key level for gold August Contract – Rs 48,005. Sell zone below — Rs 48,000 for the target of Rs 46,530-47,415. Buy zone above – Rs 48,025 for the target of Rs 48,245-48,375,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
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