Gold price in India continued to drop for the second consecutive day on Tuesday. peers. On the Multi-Commodity Exchange (MCX), October gold contracts fell 0.32 per cent to Rs 47,933 for 10 grams at 0915 hours. Silver also witnessed a huge slump on Tuesday. The precious metal future was down by 0.53 per cent to Rs 67,528 on August 3. In the international market, gold prices edged higher on Monday. Spot gold rose 0.1% to $1,816.08 per ounce by 12:23 pm EDT (1623 GMT), having hit a session low of $1,804.49. US gold futures were also up 0.1% at $1,811.30, according to Reuters.
“Gold prices ended higher last week as the US Federal Reserve kept interest rates unchanged and didn’t give any fixed timeline on tapering of its expansionary approach in wake of the delta variant of the virus and a weaker labor market. Markets will continue have a keen eye on the US non-farm payrolls report due later in the week for cues on the health of the labor market in the world’s largest economy. However, a weaker US Dollar post the accommodative approach by the US Fed and increasing cases of the new variants of coronavirus limited the fall in the bullion metal prices,” said Prathamesh Mallya, AVP- research, non-agri commodities and currencies, Angel Broking Ltd.
“International gold and silver prices have started flat to weak this Tuesday morning in Asian trade and will track the movements of the dollar and bond yields. However, as the delta variant threat continues to worsen, any weakness will continue to weigh on US yields and help buoy gold prices. Technically, if LBMA Gold trades below $1818 level we could witness the Bearish momentum to continue up to $1805-$1795 levels. Resistance is at $1812-$1820 levels.
LBMA Silver holds a resistance of 21-Daily Moving Average at $25.65 below which could see a downside move up to $25.10-$24.30 levels. Resistance is at $25.77-$26.00 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver prices could start flat to weak this Tuesday morning, tracking subdued overseas prices. Technically, MCX Gold October is below the resistance near 48000 and a sustained below could continue keep prices subdued up to 47800-47600 levels. Resistance is at Rs 48,100-48,250 levels. MCX Silver September holds a resistance Rs 68,200-69,000 levels. Support is at Rs 67,100-66,700 levels,” he added.