Gold prices Today: Gold slumped below Rs 48,000-mark on Thursday in the domestic market. On the Multi-Commodity Exchange (MCX), gold futures dropped 1.46 per cent at Rs 47,799 for 10 grams at 0910 hours IST on June 17. The yellow metal hit lowest in over a month, tracking international spot gold prices. Silver also witnessed a significant drop on Thursday. July silver futures were trading 1.59 per cent lower at Rs 70,332 a kilogram.
In the international market, gold prices slipped over 1% on Wednesday after US Federal Reserve officials brought forward projections for the first post-pandemic interest rate hikes into 2023. “The central bank held its benchmark short-term interest rate near zero and said it will continue to buy $120 billion in bonds each month to fuel the economic recovery. However, in its new projections, 11 out of 18 Fed officials projected at least two quarter-point interest rate increases for 2023. The Fed was more hawkish than markets expected and both gold and silver prices were weighed down by the statement. Meanwhile, after the announcement the dollar and yields ended solidly higher and also weighed on prices,” said Sriram Iyer, senior research analyst at Reliance Securities.
Spot gold fell 1.1% to $1,839.06 per ounce by 2:42 pm EDT (1842 GMT), having earlier hit its lowest level since May 14 at $1,833.65. US gold futures settled up 0.3% at $1,861.40, Reuters reported.
“International spot gold and silver prices have started weaker on Thursday morning in Asian trade as the dollar and US Treasury yields jumped after Federal Reserve officials projected interest rate hikes sooner than expected. Technically, LBMA Gold Spot is trading on negative note and could see a downside pressure up to $1810-$1793 levels. Resistance is at $1823-$1835pl levels. LBMA Silver below $27.50 will continue its bearish momentum and could see further downside movement up to $26.80-$26.10 levels. Resistance is at $27.65-$27.90 levels,” Iyer added.
“Domestic gold and silver prices could start gap down on Thursday morning, tracking overseas prices. On the domestic front, MCX Gold August below Rs 48,300 level could see a Bearish momentum where further could take Rs 48,100-47,700 levels. Resistance is at Rs 48,400-48,600 levels. MCX Silver July holds a support near Rs 70,800-69,900 levels. Resistance is at Rs 72,000-73,100 levels,” he added.
“Gold prices are solidly lower and hit daily lows and a four-week low in afternoon US trading Wednesday, on a bearish reaction to the just-released statement from the Federal Reserve’s Open Market Committee (FOMC) that was deemed hawkish on US monetary policy. August gold futures were last down $20.60 at $1,834.60 and July Comex silver was last down $0.263 at $27.445 an ounce,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
“Technically, August gold futures bulls still have the overall near-term technical advantage but are fading. A nine-week-old price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,810.70. First resistance is seen at $1,850.00 and then at today’s high of $1,866.00. First support is seen at $1,825.00 and then at $1,810.70,” he added.
“Gold and silver was showing some profit booking on daily as well as weekly technical chart and yesterday huge profit booking seen. But gold and silver overall trend is still positive and today huge gap down possible as per Comex chart, traders are advise to create long positions in gap down opening near our support levels and traders should also focus important technical levels given below for the day:- August Gold closing price Rs 48,506, Support 1 – Rs 47,300, Support 2 – Rs 46,800, Resistance 1 – Rs 48,620, Resistance 2 – Rs 48,800. July silver closing price 71,468, Support 1 – Rs 69,800, Support 2 – Rs 68,500, Resistance 1 – Rs 71,800, Resistance 2 – Rs 72,300,” he mentioned.
“Gold on MCX is also expected to fall sharply in the initial trade due to Fed’s deemed hawkish statement however will find its major support around Rs 48,000 levels where it will be in oversold zone and contra trade can be initiate from these levels. Key level for gold August Contract – Rs 48,536 Sell Zone Below – Rs 48,500 for the target of Rs 48,300-48,100. Buy Zone Above – Rs 48,540 for the target of Rs 48,650-48,850,” Sandeep Matta, founder, TRADEIT Investment Advisor.
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