Gold price in India continued to drop on Thursday. The yellow metal is in red zone for the last few weeks. On the Multi-Commodity Exchange (MCX), October gold contracts fell 0.11 per cent to Rs 46,854 for 10 grams at 0930 hours on October 7. The dip in gold prices could attract buyers ahead of the month-long festive season, jewellers believed. Silver price, on the other hand, remained flat on October 7. The precious metal was trading at Rs 61,041, 0.06 per cent up on Thursday.
In the international market, gold price started flat on Thursday. The one-year high US dollar index contributed to the low yellow metal price on October 7. Spot gold was flat at $1,761.36 per ounce by 0118 GMT, while US gold futures were little changed at $1,763.10, according to Reuters. All eyes were on US payroll report which would provide some clues on US Federal Reserve’s tapering timeline. US dollar index were close to a one-year high and it made gold less appealing to those holding other currencies. 10-year US Treasuries yield remained above 1.5 per cent. However it was down from more than three-year high. US private payrolls rose significantly as COVID-19 infections started subsiding in the region. US non-farm payrolls data were due on October 8. The US Senate appeared near to a temporary deal to avert a federal debt default in the next two weeks.
Gold prices were modestly up in midday US trading Wednesday, on some short covering by the shorter-term futures traders and as bullish bargain buyers stepped in to buy the earlier dip in prices. However, the key outside markets were in bearish daily postures for the metals at mid-week and that limited buying interest: a higher US dollar index, rising Treasury bond yields and lower crude oil prices. The key outside markets earlier saw the US dollar index higher and back near last week’s 12-month high. Nymex crude oil futures are down and trading around $77.35 a barrel after hitting a nearly seven-year high overnight. Meantime, the 10-year US Treasury note yield is presently fetching 1.517 per cent, said Amit khare, AVP- Research Commodities, Ganganagar Commodity Limited.
Gold and silver are forming a bottom now, momentum indicator RSI also indicating the same and creating a strong positive divergence in daily chart. So traders are advised to create fresh long positions in Gold and Silver in small dips near given support, traders should focus important technical levels given below for the day: December gold closing price Rs 46,907, Support 1 – Rs 46,650, Support 2 – Rs 46,450, Resistance 1 – Rs 47,170, Resistance 2 – Rs 47,450. December silver closing price Rs 61,003, Support 1 – Rs 60,500, Support 2 – Rs 60,000, Resistance 1 – Rs 61,425, Resistance 2 – Rs 62,050,” Khare added.
“The higher US Treasury yields on the expectations of rising inflation and expectation of sooner Fed’s tapering is weighing heavily on Gold prices. Now the attention is turning towards the US jobs data to decide the next direction in gold price. Buy Zone Above – Rs 46,800 for the target of Rs 47,300. Sell Zone Below – Rs 46,600 for the target of Rs 46,300,” said Ravi Singh, vice president and head of research, ShareIndia.
“LBMA Gold below $1760 could see Bearish momentum where it holds a resistance near $1768-$1777 levels. Support is at $1750-$1738 levels. MCX Gold December below 46900 could see a Bearish momentum up to Rs 46,600-46,400 levels. Resistance at 47100-47300 levels. Strategy for Gold December Sell Rs 46900 SL Rs 47,050 Target Rs 46,600. LBMA Silver below $23.00 level could see sideways to marginal downside momentum up to $22.10-$21.33 levels. Resistance is at $22.90-$23.77 levels. MCX Silver December below Rs 61,000 level could see Rs 60,300-59,500 levels. Resistance is at Rs 61,400-62,000 levels,” said Neha Qureshi, technical analyst at Reliance Securities.
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