Gold price in India dropped for the third straight day on Thursday. On the Multi-Commodity Exchange (MCX), October gold contracts tanked 0.04 per cent to Rs 47,162 for 10 grams at 0930 hours on August 26. Silver price continued to drop as well. The precious metal future fell 0.14 per cent to Rs 63,183 on August 26.
In the global market, the gold prices edged lower on Thursday.Spot gold fell 0.1 per cent to $1,788.17 per ounce by 0316 GMT. Prices fell 0.7 per cent in the previous session, its biggest one-day decline in more than two weeks, Reuters mentioned. All eyes are on US Federal Reserve Chair Jerome Powell’s speech scheduled on Friday. The investors are keenly waiting for cues to the US central bank’s plans over tapering of economic stimulus.
“Gold and silver prices are lower in midday trading Wednesday, but up from session lows, on some routine profit taking and downside corrections after recent gains. Better risk appetite recently is also a bearish element for the safe-haven metals. The key outside markets today see the U.S. dollar index slightly firmer and still trending higher. Nymex crude oil futures prices are higher and trading around $68.00 a barrel. This week’s strong rebound in crude prices suggests the market has put in a near-term bottom. That’s a bullish element for the entire raw commodity sector, including the metals. Meantime, the yield on the benchmark US 10-year Treasury note is presently fetching around 1.31 per cent,” said Amit khare, AVP- Research Commodities, Ganganagar Commodities Limited.
“We have been seeing routine profit booking in gold and silver from higher levels, which is necessary for the next up move. Gold and silver are making bottom and Momentum indicator RSI creating a strong positive divergence in Silver in daily as well as four hourly chart, any dips is a opportunity to create fresh long positions in bullions. So traders are advised to create fresh buy positions in gold and silver near given support levels. Traders should also focus important technical levels given below for the day: August gold closing price Rs 47,179, Support 1 – Rs 46,950, Support 2 – Rs 46,700, Resistance 1 – Rs 47,400, Resistance 2 – Rs 47,700. September silver closing price Rs 63,272, Support 1 – Rs 62,850, Support 2 – Rs 62,400, Resistance 1 – Rs 63,660, Resistance 2 – Rs 64,230,” Khare added.
“Gold prices seems in hibernation mode and operating comfortably within the range of $1770-$1810/oz. Market participants are keenly eyeing on upcoming economic symposium which could become the new catalyst for gold to surge.
Gold on MCX also tanked and traded in deep stress though out the day. The outlook is negative until it cross and sustain above 47500 level. The momentum indicators are suggesting some more profit booking and market participants are advise to follow key pivotal levels. Key level for gold August Contract – Rs 47,247 Buy Zone Above – Rs 47,250 for the target of Rs 47,414-47,600, Sell Zone Below – Rs 47,240 for the target of Rs 47,012-46,845,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
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