Gold price in India dropped on Thursday, following the global cues. On the Multi-Commodity Exchange (MCX), gold price future plunged 0.13 per cent to Rs 52,560 for 10 per cent at 0925 hours on April 21. Silver price also slumped on Thursday. The precious metal future fell sharply by 0.33 per cent to Rs 68,180 for a kilogram.
In the international market, gold price eased on Thursday due to a rebound in US Treasury yields. Spot gold was down 0.3 per cent at $1,951.76 per ounce, as of 0300 GMT. US gold futures dipped 0.1 per cent at $1,954.50. US 10-year Treasury yields inched up as investors had expected the Federal Reserve to hike interest rates to tighten inflation.
Gold Price Outlook
“International gold spot and COMEX futures have started weaker this Thursday morning in Asian trade ahead of the final public statement from the Fed Chair Jerome Powell tonight. Traders will closely watch for any hints regarding future monetary policy. Meanwhile, a rebound in US Treasury yields and the dollar also kept upside capped. Today’s range of Spot LBMA gold is $1970.78-$1944.68,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold futures prices could start weak this Thursday morning, tracking a negative start in the overseas markets. Today’s range of MCX June gold is Rs 52,870-52,410,” Iyer added.
“After taking a one percent dive in the previous session post hawkish comments from Fed officials which propelled the dollar and the 10-year Treasury yields to multi-year highs, prices were back in the positive territory in the prior session. However, supporting the yellow metal price is the escalation in the Russia-Ukraine war coupled with inflation concerns and concerns about the Chinese economy as the industrial production numbers showed both manufacturing and utilities production have slowed down given the recent covid-19 outbreak in the city of Shanghai. We expect gold to trade higher towards 53120 levels, break of which could prompt the price to move higher to Rs 53,560 levels,” said Saish Sandeep Sawant Dessai, research associate- base metals, Angel One Ltd.
“Gold prices are expected to outperform even after the current war tension settles as due to the after-effects of war, higher commodities prices and soared inflation, the world would see some sort of recession zone where gold would be the preferred asset above all. Buy Zone Near – Rs 52,500 for the target of Rs 52,800. Sell Zone Below – Rs 52,300 for the target of Rs 52,000,” said Ravi Singh, vice president and head of research, ShareIndia.
“Gold and silver showed downside movement on the 20th April trading session. As per technical chart gold and silver are showing some positivity and ready for upside movement, momentum indicator RSI also indicating the same in hourly as well as daily chart. So traders are advised to create fresh buy positions near given support levels. Traders should focus important technical levels given below for the day: June Gold closing price Rs 52,628, Support 1 – Rs 52,500, Support 2 – Rs 52,250, Resistance 1 – Rs 52,700, Resistance 2 – Rs 53,000,” Amit Khare, AVP- research commodities, Ganganagar Commodity Limited.
“May silver closing price Rs 68,406, Support 1 – Rs 68,000, Support 2 – Rs 67,700, Resistance 1 – Rs 68,770, Resistance 2 – Rs 69,300,” he added.
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