Gold price in India continued to remain flat on Wednesday. On the Multi-Commodity Exchange (MCX), October gold contracts was trading flat at Rs 47,215 for 10 grams, down 0.10 per cent at 1000 hours on September 15. Silver prices witnessed a significant drop on Wednesday. The precious metal price tanked 0.27 per cent on September 15. Silver price remained under pressure throughout the week.
In the international market, gold price remained steady on the account of lower-than-expected rise in inflation in the United States. Spot gold remained flat at $1,802.92 per ounce as of 0318 GMT while US gold futures eased 0.2% to $1,804.30. Consumer Price Index (CPI) was up just 0.1 per cent last month against expected increase of 0.3 per cent. That lowest gain sicne February this year. US dollar index fell after the inflation data. The US 10-year yield hit its lowest reading since August 24 on Tuesday.
“International gold and silver prices have started flat to marginally weaker on Wednesday morning in Asian trade. The US Dollar and Yields recovered slightly from last night’s losses and kept upside capped. However, weak inflation data has recast doubts over the Federal Reserve’s taper timeline. The Fed meeting is due next week. So till that time gold could track data, with retail sales data due this week," said Sriram Iyer, senior research Analyst at Reliance Securities.
“Technically, LBMA Gold had bounced back above $1800 level above which could see $1810-$1823 levels. Support is at $1792-$1786 levels. LBMA Silver is trading below $24.00 levels below which could see sideways to marginal downside momentum up to $23.30-$22.88 levels. Resistance is at $23.95-$24.10 levels," Iyer added.
“Domestic gold and silver prices could start flat to marginally weaker on Wednesday morning, tracking overseas prices. On the domestic front, MCX Gold October above Rs 47,000 level could see a Bullish momentum up to Rs 47,400-47,600 levels. Support is at Rs 47,100-47,000 levels. MCX Silver December above Rs 62,500 level could see Rs 63,800-64,300 levels. Support is at Rs 63,000-62,700 levels," Iyer added.
“The metals markets got a lift following a US inflation report yesterday’s evening that came in cooler than expected and in turn sparked a sell off in the US dollar index. Gold prices had slipped to a three-week low overnight. October gold futures were last up $11.70 at $1,804.00. December Comex silver was last up $0.049 at $23.845 an ounce. The other key outside market yesterday sees Nymex crude oil futures prices higher, hitting a five-week high, and trading around $70.70 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.285 per cent," said Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited.
“A good short covering rally in bullions from bottom levels may continue for next few trading sessions. Technical chart are showing some strength in gold and silver. Momentum indicator RSI also indicating the same. So traders are advised to create fresh buy positions in gold and silver in small dips near given support levels, Traders should focus important technical levels given below for the day: October gold closing price Rs 47,260, Support 1 - Rs 47,000, Support 2 - Rs 46,800, Resistance 1 - Rs 47,450, Resistance 2 - Rs 47,700. December Silver closing price Rs 63,585, Support 1 - Rs 63,000, Support 2 - Rs 62,400, Resistance 1 - Rs 64,200, Resistance 2 - Rs 65,030," he added.