Gold price in India witnessed a huge drop on Monday. On the Multi-Commodity Exchange (MCX), August gold contracts dropped 0.03 per cent lower to Rs 47,909 for 10 grams at 1235 hours. Silver also slumped on July 19. The precious metal tanked 0.89 per cent to Rs 67,709 on Monday.
“Gold’s fair value seems determine around 1800 level as the yellow metal is struggling to breach $1835 levels in absence of new fundamental news, rising US dollar and looming threats of delta variant. A strong rally in global equity markets has also dampened the safe-haven status of gold. US dollar is going to be key driver of gold prices for next few days and any further increase in dollar will impact negatively for the safe heaven," said Sandeep Matta, founder, TRADEIT Investment Advisor.
“In line with our view, Gold prices on MCX has also witnessed sharp fall on Friday and closed around 48000 levels. Our outlook for the gold is neutral as of now until it cross and sustain above 48500 levels. Long term investors are again advised to wait for some more correction for making a fresh entry while day traders need to be proactive in capturing small profit both the side.
Key level for GOLD August Contract – Rs 48,139. Buy Zone Above – Rs 48,150 for the target of Rs 48,250-48,408. Sell Zone Below – Rs 48,150 for the target of Rs 47,925-47,837," he added.
“Federal Reserve Chairman Jerome Powell’s testimony to a Senate committee Thursday did not offer any new insight following his remarks and prepared text to a House panel on Wednesday, when he leaned easy on monetary policy. Powell said the Fed is still a ways off on tapering its bond-buying program (quantitative easing). He also said the US central bank still believes rising inflation is only transitory. Many think Powell and the Fed are behind the curve on the inflation front. The key outside markets today see the U.S. dollar index higher, while Nymex crude oil prices are lower and trading around $71.46 a barrel," said Amit Khare, AVP, Research Commodities, Ganganagar Commodities Limited.
“Gold and Silver are looking weak on the technical, momentum indicator RSI also indicating the same. Traders are advise create short position in Gold and Silver, traders should also focus important technical levels given below for the day : August Gold closing price 48,053, Support 1 - Rs 47,800, Support 2 - Rs 47,600, Resistance 1 - Rs 48,300, Resistance 2 - Rs 48,510. September Silver closing price 68,319, Support 1 - Rs 67,300, Support 2 - Rs 66,300, Resistance 1 - Rs 69,400, Resistance 2 - Rs 70,000," Khare added.