Gold price in India saw a significant drop on Tuesday, tracking international peers. On the Multi-Commodity Exchange (MCX), October gold future slumped 0.19 per cent to Rs 46,191 at 0920 hours on September 21. Silver price remained flat on September 21. The precious metal future was trading at Rs 59,622. 0.02 per cent up on September 21. In the global market, gold prices were flat on Tuesday. Spot gold was steady at $1,763.60 per ounce, as of 0123 GMT. US gold futures were flat at $1,764.40.
The investors awaited the outcome of the US Federal Reserve’s policy meeting on Wednesday. The central bank is expected to provide cues on when it will begin tapering its asset purchases. However the dollar was trading marginally in the red and kept downside limited for gold. The US dollar continued to show strength against the basket of currencies on Monday amid safe appeal for the greenback and kept upside capped.
“International gold spot and futures started marginally higher early Tuesday morning in Asian trade. Technically, LBMA Gold has bounced back from $1745 levels where it could see $1771-$1783 levels. Support is at $1758-$1747 levels. On the domestic side, gold futures on MCX could start marginally in the green on Tuesday morning trade, tracking overseas prices. Technically, MCX Gold October below Rs 46,300 level could see a Bearish momentum up to Rs 46,000-45,800 levels. Resistance is at Rs 46,300-46,500 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Gold prices bounced slightly on Monday as concerns about property group China Evergrande’s solvency drove world shares lower, stoking risk aversion, while traders awaited the outcome of this week’s US Federal Reserve policy meeting. Overall, we expect gold prices to consolidate in the range of Rs 45,800-46,400 levels for the day,” ICICI Securities said in a report.
“The Evergrande crisis comes as the US Federal Reserve has its two-day monetary policy meeting beginning Tuesday morning and ending Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The marketplace is wondering if a big sell off in global stock and financial markets early this week would impact the Fed’s discussion on the timing of tapering its bond-buying program. The key outside markets yesterday see the US dollar index slightly higher and hitting a four-week high overnight. Nymex crude oil futures prices are lower and trading around $70.50 a barrel. Meantime, the yield on the benchmark US 10-year Treasury note is presently fetching 1.307 per cent,” said Amit khare, AVP- Research Commodities, Ganganagar Commodities Limited.
“As per technical chart both metals are trading at oversold zone, which means any time we can see a good short covering rally in bullions. Momentum indicator RSI also indicating the same and creating a strong positive divergence in four hourly as well as daily chart. So traders are advised to create fresh buy positions in Gold and Silver, traders should focus important technical levels given below for the day: October Gold closing price 46278, Support 1 – Rs 46,000, Support 2 – 45800, Resistance 1 – Rs 46,550, Resistance 2 – Rs 46,800.
International silver spot and futures recovered marginally and are trading in the green on Tuesday early morning trade in Asia. “Technically, LBMA Silver below $22.50 level could see sideways to marginal downside momentum up to $21.80-$20.35 levels. Resistance is at $22.96-$23.40 levels. On the domestic side, silver futures on MCX could start marginally in the green on Tuesday morning trade, tracking overseas prices. Technically, MCX Silver December below Rs 60,000 level could see Rs 59,300-58,000 levels. Resistance is at Rs 60,200-61,000 levels,” Iyer added.
“December Silver closing price Rs 59,609, Support 1 – Rs 59,000, Support 2 – Rs 58,000, Resistance 1 – Rs 60,150, Resistance 2 – Rs 60,700,” he added,” Khare added.
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