News18» News»Business»Gold Price Drops Today; Silver Down for Third Straight Day. Should You Invest?
2-MIN READ

Gold Price Drops Today; Silver Down for Third Straight Day. Should You Invest?

Sovereign Gold Bond scheme was first introduced to bring a change in the perspective of purchasing gold for financial investment

Sovereign Gold Bond scheme was first introduced to bring a change in the perspective of purchasing gold for financial investment

Gold Price Today: Technically, if MCX Gold June breaks out above Rs 48,400, we could see prices move up to Rs 48,800-49,100 levels. Support is at Rs 48,350-48,150 levels, says analyst

Gold prices in the Indian market dropped on Thursday, tracking the global cues. On Multi Commodity Exchange (MCX), June gold futures were down 0.30% to Rs 48,530 for 10 gram at 10.30 am on May 20. Silve prices slumped for third straight day. On MCX, silver July futures were down by 0.31% to Rs 73,000.

In the international market, yellow metal prices were flat on Thursday as the dollar firmed and US Treasury yields rose after the release of the minutes from the Federal Reserve’s last monetary policy meeting.

Spot gold was flat at $1,869.50 per ounce by 0500 GMT, after hitting its highest since January 8 at $1,889.75 on Wednesday. US gold futures fell 0.7% to $1,869.20 per ounce.

“International spot gold was unable to hold on to its gains and saw some selling pressure from the highs of the session on Wednesday as the Federal Reserve signals that a discussion on reducing its bond-purchasing program could be soon on the table," said Sriram Iyer, senior research analyst at Reliance Securities.

RELATED NEWS

“The minutes of the Federal Reserve’s April monetary policy meeting showed that with momentum building in the US economy, the committee will begin discussing a plan for adjusting the pace of asset purchases. Of course, the committee reiterated that it would likely be some time until the economy had made substantial further progress toward the Fed’s maximum-employment and price-stability goals. Meanwhile, the dollar recovered after the Fed minutes and capped upside, however weaker Bitcoin and weak equities kept downside limited for gold," Iyer added.

International spot gold and silver prices started flat to marginally higher this Thursday morning in Asian trade. Silver prices ended weak on Wednesday.

“The US bond yields, and the greenback have started weaker this Thursday morning in Asian trade and lent support.However, we have to watch how the investors digest the Fed minutes over the next few sessions. Technically, LBMA Gold Spot resistances remain at $1885 and $1894. Supports are at $1863 and $1855.Technically, LBMA Silver could trade on bullish momentum up to $28.20-$28.90 levels. Support is at $27.25-$26.77 levels," he further added.

“Domestic gold and silver prices could start flat to marginally higher this Thursday morning tracking overseas prices. Technically, if MCX Gold June breaks out above Rs 48,400, we could see prices move up to Rs 48,800-49,100 levels. Support is at Rs 48,350-48,150 levels," analyst from Reliance Securities added.

“Technically, MCX Silver July has given a breakout Rs 72,500 can take prices up to Rs 73,200-74,000 levels. Support is at Rs 71,500-70,400 levels," he mentioned.

“Traders are advise to go longs on dips and also focus important technical levels given below: June Gold closing price Rs 48,674, Support 1 - Rs 48,400, Support 2 - Rs 48,100, Resistance 1 - Rs 49,100, Resistance 2 - Rs 49,500. July Silver closing price Rs 72,374, Support 1 - Rs 71,800, Support 2 - Rs 71,000, Resistance 1 - Rs 73,000, Resistance 2 - Rs 73,600, advised Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.

Read all the Latest News, Breaking News and Coronavirus News here

Tags
first published:May 20, 2021, 11:03 IST