Gold price in India saw huge drop on the fist day of this week, tracking the global peers. On the Multi-Commodity Exchange (MCX), October gold contracts tanked 0.13 per cent to Rs 47,940 for 10 grams at 0905 hours. Silver was trading plat on Monday. The precious metal was up by 0.03 per cent to Rs 67,870. In the international market, gold prices edged lower on Monday. Spot gold fell 0.2% to $1,809.21 per ounce by 0137 GMT. Prices retreated from a two-week peak in the previous session after the dollar recovered. US gold futures fell 0.1% to $1,814.90. Silver fell 0.4% to $25.37 per ounce. The investors will keep an eye monthly US jobs data coming this week.
India’s gold demand increased 19.2 per cent year-on-year to 76.1 tonne during the April-June quarter this year, driven by low base effect, according to data released by the World Gold Council (WGC). The gold demand stood at 63.8 tonnes during the same period last year. However, demand plunged 46 per cent quarter-on quarter as the second wave of Covid-19 hit the nation.“The second quarter of 2021 was marked by widespread regional lockdowns following a rise in Covid-19 infections. Unlike the previous year when a national lockdown took businesses by surprise, this quarter was relatively better as businesses were more prepared. Demand in Q2 2021, showed a 19.2 per cent year-on-year increase on a very low base of Q2’ 2020, the impact was, however, severe as it muted demand during Akshaya Tritiya and wedding season in Q2,” said Somasundaram PR, regional chief executive officer, WGC India, news agency PTI reported. In value terms, India’s gold demand witnessed 23 per cent growth during April-June quarter at Rs 32,810 crore. It was Rs 26,600 crore during the corresponding period of 2020.
“Bullion Index ended marginally weaker, tracking weak domestic gold and silver prices. Meanwhile, the personal consumption expenditures (PCE) price index rose 0.4% in June after advancing 0.5% in May. In the 12 months through June, the core PCE price index shot up 3.5%. The core PCE price index increased 3.4% year-on-year in May. On the speculative side of things, COMEX gold speculators cut the net long positions by 3,004 contracts to 105,811, while COMEX silver speculators cut the net long positions by 5,059 contracts to 21,189 in the week to July 27. International spot gold and silver prices have started marginally weaker this Monday morning in Asian trade with traders eyeing monthly US jobs data to gauge the health of the labour market. Technically, if LBMA Gold trades below $1818 level we could see a Bearish momentum up to $1805-$1795 levels. Resistance is at $1816-$1825 levels. LBMA Silver holds a resistance zone $25.50-$26.00 levels below which could see a downside move up to $25.10-$23.95 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver prices could start higher this Friday morning, tracking overseas prices. On the domestic front, if MCX Gold October trades below Rs 48,000 we can witness prices fall up to Rs 47,900-47,700 levels. Resistance is at Rs 48,150-48,300 levels. MCX Silver September holds a resistance Rs 68,300-69,000 levels. Support is at Rs 67,500-66,900 levels,” he added.
“Gold prices pushed to a nearly six-week high following FOMC outcome and witnessed some technical selling pressure into the weekend. The change in outlook further cements the view that interest rates will stay lower for a longer time frame which is surely a big positive for the gold however precious metal has to breach and start sustaining above $1840 level to reverse the current consolidation phase,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold on MCX also continuing the sine curve ride where the counter is forming a strong trading range between Rs 47,300 to Rs Rs 48,000 and becoming a trader’s delight every passing day. Gold prices are expected to remain in pressure amid positive global equity markets and market participants are advised to follow key pivotal levels either side. Key level for gold August contract – Rs 48,145. Sell Zone Below – Rs 48,150 for the target of Rs 47,900-47,731. Buy Zone Above – Rs 48,150 for the target of Rs 48,331-48,500,” Matta added.
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