Gold prices in India declined on Monday to Rs 69,117 per 10 grams, which is the lowest since July 30. Experts said the gold prices in India fell by Rs 1,275 today due to a global sell-off, and the rates are likely to remain volatile in the upcoming days.
The 24-carat gold price had closed at Rs 70,392 in the previous session on Friday. On July 30, the spot gold price had stood at Rs 68,680 per 10 grams.
The fall in the yellow precious metal on Monday was triggered by strength in the Japanese yen vis-a-vis the US dollar following a 0.25% rate hike by the Bank of Japan.
Silver also fell by 4,551 to Rs 78,950 per kg on Monday, compared with Rs 83,501 per kg in the previous session on Friday.
“Gold prices opened strong in Comex, starting near $2,440 and rallying to $2,455, which pushed MCX Gold to Rs 70,500. However, panic triggered by the Japanese Yen and the Bank of Japan has contributed to a sell-off in gold,” Jateen Trivedi, vice-president (research analyst- commodity and currency) of LKP Securities, said.
With US interest rates still elevated, gold has encountered resistance on recent rises, particularly around Rs 70,500, he added.
In the international market, gold prices were trading lower by 2.09 per cent at $2,393.1 an ounce, while silver prices were down by 5.76 per cent at $27.01 an ounce in New York.
In the futures market in India, gold was trading 0.93 per cent lower at Rs 69,138 per 10 grams on the MCX, for the October delivery. Silver was also down by 3.96 per cent at Rs 79,225 per kg for the September delivery.
“A potential preemptive US interest rate cut could increase buying pressure in gold, especially since recent economic data from the US has not been supportive,” Trivedi said.
The price range for gold is expected to be between Rs 69,000 and Rs 71,000, with volatility likely in the sessions ahead, he added.
“Gold and silver exhibited significant price volatility last week, experiencing gains in the international markets. Gold prices reached a lifetime high amid hopes for Fed rate cuts and disappointing US job data. Silver followed suit, surpassing $28.50 per troy ounce. However, both precious metals were unable to sustain these highs, declining after weaker-than-expected US job reports and factory orders data, which heightened recession fears,” Rahul Kalantri, vice-president (commodities), Mehta Equities, said.
Additionally, the Japanese Yen made a strong comeback against the US dollar, increasing volatility in global financial markets. Despite this, gold and silver prices dipped from their peaks but found support due to dollar weakness and escalating tensions in the Middle East, he added.
Gold has support at $2418-2398 and resistance at $2454-2474. Silver has support at $28.10-27.88 and resistance at $28.64-28.85. In rupee terms, gold has support at Rs 69,150-68,880 and resistance at Rs 69,790-70,050. Silver has support at Rs 82,020-81,450 and resistance at Rs 83,290-83,840, Kalantri added.
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