Gold price in India remained flat on Monday, November 1. The yellow metal price has been hovering around Rs 47,000-mark ahead of Diwali. On the Multi-Commodity Exchange (MCX), December gold price jumped 0.12 per cent to Rs 47,691 for 10 grams at 0955 hours on November 1. Silver price also slumped for the fifth straight day on Monday. The precious metal fell 0.30 per cent to Rs 64,425 on November 1.
In the international market, gold price fell on Monday, weighed down by a stronger dollar after US data showing inflation stayed hot last month.
The Fed Reserve’s preferred inflation measure climbed at a 4.4 per cent annual rate in September, continuing a run of inflation at levels not seen in 30 years. All eyes were in Federal Reserve policy meeting scheduled later this week. Spot gold dropped 0.1 per cent to $1,781.78 per ounce. The US dollar index edged higher, making gold less appealing to buyers holding other currencies.
“International gold prices have started with small gains this Monday morning in Asian trade ahead of Fed meeting. Upside was limited as the dollar strengthened after data showing another advance in inflation fueled bets over the Federal Reserve tightening its policy sooner. Technically, if LBMA Gold trades above $1780 level it could witness a sideways to marginal upside momentum up to the resistance zones at $1795-$1810 levels. Support zones is at $1777-$1768 levels. Domestic gold prices could start with small gains this Monday morning, tracking overseas prices. Technically, if MCX Gold December trades above 47500 it could witness a bullish momentum up to the resistance zones at Rs 47,800-48,000 levels. Support zones at Rs 47,400-47,150 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“The World Gold Council reported gold demand in the third quarter had declined 7 per cent compared to Q3 2020. Outflows from gold-backed ETFs were the primary factor. Increasing jewelry demand did mitigate the slide in demand, said the WGC. Gold jewelry demand grew 33 per cent, year-on-year. Meantime, central banks purchased 69 metric tons for reserves vs 10 MT in same period in 2020. The other key outside market today sees crude oil prices weaker and trading around $82.30 a barrel. Meantime, the 10-year US Treasury note yield is presently fetching 1.612 per cent,” said Amit Khare, AVP-research commodities, Ganganagar Commodity Limited.
“Last week, we saw some profit booking in Bullions at upper levels, As per technical chart both metals are ready for upside movement again, Momentum indicator RSI also indicating the same on daily chart. So traders are advised to make 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:
December Gold closing price Rs 47,635, Support 1 – Rs 47,300, Support 2 – Rs 47,100, Resistance 1 – Rs 47,950, Resistance 2 – Rs 48,260. December Silver closing price Rs 64,534, Support 1 – Rs 64,000, Support 2 – Rs 63,400, Resistance 1 – Rs 65,000, Resistance 2 – Rs 65,670,” Khare added.
“Stronger dollar and boiling inflation data forced traders to dump Gold on Friday making most intraday price losses in recent weeks. The consumer spending data fueled worries about aggressive monetary policy action from the Fed to combat a surge in prices, sending yields on the US 10-year note up as high as 1.6190 per cent, and the dollar surging 0.8 per cent. Technically traders can look to buy Gold on MCX above Rs 47,660 for the target of Rs 47,810,” said Vidit Garg, director, MyGoldKart.
“International silver prices have started with small cuts this Monday morning in Asian trade ahead of Fed and a stronger dollar. Technically, if LBMA Silver trades above $23.50 levels, it could witness a bullish momentum up to the resistance zones at $24.25-$24.70 levels. Support zones is at $23.10-$22.80 levels. Domestic silver prices could start with small cuts this Monday morning, tracking overseas prices. Technically, if MCX Silver December trades above Rs 64,500 level it could witness a bullish momentum up to the resistance zones at Rs 65,000-65,700 levels. Support zones is at Rs 64,200-67,400 levels,” Sriram Iyer added.