Gold price witnessed a huge drop on Wednesday, October 27 a week ahead of Diwali. On the Multi-Commodity Exchange (MCX), December gold price fell 0.22 per cent to Rs 47,709 for 10 grams at 1152 hours on October 27. Silver price also slumped on Wednesay. The precious metal dropped 0.30 per cent to Rs 64,791 on October 27.
Gold price also eased in the international market on Wednesday. Spot gold was down 0.2 per cent at $1,788.66 per ounce, as of 0157 GMT while US gold futures dropped 0.2 per cent to $1,790.60, according to Reuters. Benchmark 10-year US Treasury yields rose. The dollar also steadied close to a one-week high hit in the previous session.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2 per cent to 979.81 tonnes on Tuesday from 978.07 tonnes on Monday.
“Both metals’ bulls remain comfortable at present, as near-term price uptrends are in place and the overall path of least resistance is sideways to higher. The key outside markets Yesterday saw the US dollar index higher — also a negative for the metals. Crude oil prices are higher and trading around $85.00 a barrel. Don’t be surprised if continually rising energy prices heading into the Northern Hemisphere winter start to bite at trader and investor sentiment,” said Amit khare, AVP-research commodities, Ganganagar Commodity Limited.
“Profit booking in Bullions at higher levels which may continue for next 1-2 trading sessions, Momentum indicator RSI also indicating the same on daily chart, So traders are advised to make fresh short positions in Gold and Silver in small bounce near given resistance levels, traders should focus important technical levels given below for the day : December gold closing price Rs 47,813, Support 1 – Rs 47,600, Support 2 – Rs 47,400, Resistance 1 – Rs 48,012, Resistance 2 – Rs 48,200. December Silver closing price Rs 64,612, Support 1 – Rs 64,000, Support 2 – Rs 63,200, Resistance 1 – Rs 65,500, Resistance 2 – Rs 65,900,” Khare added.
“Gold MCX is technically in a very strong uptrend taking cues from the Comex Gold which was also supported by increasing worries about problematic price inflation in US. The increasing demand in domestic gold due to improved retail buying and rising footfall at jewellery showrooms due to lucrative discounts and offers has hold the prices. Buy Zone – Rs 48,000 for the target of Rs 48,350. Sell Zone Below – Rs 47,900 for the target of Rs 47,600,” said Manoj Dalmia, founder and director- Proficient Equities Limited.
“International gold prices have started weaker this Wednesday morning in Asian trade tracking the strength of the U.S. Dollar and stronger benchmark treasury yield ahead of key central bank meetings and data points this week. Technically, COMEX Gold December resistances are at $1807.80 and $1822.20. Supports are at $1781.00 and $1768.60. Domestic gold prices could start weaker this Wednesday morning, tracking overseas prices. Technically, MCX Gold December resistances are at Rs 48,201 and Rs 48,588. Supports are at Rs 47,505 and Rs 47,196,” said Sriram Iyer, senior research analyst at Reliance Securities.
“International silver prices have started weaker this Wednesday morning in Asian trade tracking the strength of the U.S. Dollar. Technically, COMEX Silver December resistances are at $24.520 and $24.953. Supports are at $23.790 and $23.493. Domestic silver prices could start weaker this Wednesday morning, tracking overseas prices. Technically, MCX Silver December resistances are at Rs 65,945 and Rs 66,902. Supports are at Rs 64,322 and Rs 63,656,” Iyer added.
Read all the Latest News , Breaking News and IPL 2022 Live Updates here.
Comments
0 comment