Home» News» Business» Gold Price Today Below Rs 47,500, Drops for Second Time in 3 days. Should you Buy?
3-MIN READ

Gold Price Today Below Rs 47,500, Drops for Second Time in 3 days. Should you Buy?

In the international market, gold prices fell on Thursday

In the international market, gold prices fell on Thursday

Gold Price Today: On the Multi-Commodity Exchange (MCX), August gold contracts slumped 0.47 per cent to Rs 47,869 for 10 grams at 0905 hours on July 21

Gold price in India witnessed a huge drop again on Thursday, tracking the overseas market. On the Multi-Commodity Exchange (MCX), August gold contracts slumped 0.47 per cent to Rs 47,450 for 10 grams at 0928 hours on July 22. Yellow metal prices dropped for the second time in three days amid weak global cues. Another precious metal Silver also tanked on Thursday. Silver September future tanked 0.97 per cent to Rs 67,036 a kilogram on July 22.

In the international market gold prices slumped near a more than one-week low on Thursday. Spot gold was down 0.3% at $1,798.27 per ounce, as of 0313 GMT. US gold futures eased 0.3% to $1,798.70 per ounce, according to Reuters. The dollar index hovered around highest in three months on Thursday ahead of the European Central Bank policy decision. The policymakers is expected to implement for the first time changes to their strategy. Benchmark US Treasury yields continued their bounce from five-month lows following a weak 20-year bond auction.

“On the monetary policy front, US Federal Reserve officials will meet next week, while the European Central Bank meeting is tonight. International gold inched lower on Thursday morning in Asian trade, as investors looked past economic threats from rising cases of the Delta coronavirus variant and opted for riskier assets instead. The yield on 10-year Treasury notes continued their bounce from five-month lows and weighed on gold. International silver continued to move higher on Thursday morning in Asian trade. Technically, LBMA Gold could see sideways to marginal downside momentum and could trade in a range of $1790-$1810 levels. LBMA Silver holds a 21-Daily Moving Average near $26.00 level below which could take prices $25.00-$24.70 levels. Resistance is at $25.40-$25.70 levels," said Sriram Iyer, senior research analyst at Reliance Securities.

“Domestic gold could start weaker, while silver could start higher on Thursday morning tracking overseas prices. Technically, MCX Gold August took a support of Rs 47,500 levels where it closed above it indicating a sideways momentum within the range of Rs 47,700-47,400 levels in coming session. MCX Silver September below Rs 68,000 could see Rs 66,800-66,000 levels. Resistance is at Rs 67,700-68,400 levels," he added.

RELATED NEWS

“Gold is undoubtedly swimming against strong currents, which are curtailing any move to the upside. Recently it has been struggling successfully to stay above $1800 per ounce. On Monday as well as today, gold prices came close to testing the 100-day moving average, which is currently at $1792.10, and on both occasions closed just above $1800. The US dollar index is strong and hit another 3.5-month high overnight. The USDX continues to be in a near-term price uptrend. Meantime, Nymex crude oil prices are sharply higher on a big corrective bounce after dropping sharply and hitting a five-week low on Monday, and are trading around $70.30 a barrel. The 10-year U.S. Treasury note yield is presently trading at 1.24%," said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.

“Gold and Silver are giving some buying signal on the daily chart, momentum indicator RSI also indicating the same. Silver is looking more strong than Gold in daily chart and creating a positive divergence in daily chart, So traders are advise create long position in Gold and Silver near support levels, traders should also focus important technical levels given below for the day: August Gold closing price Rs 47,573, Support 1 - Rs 47,400, Support 2 - Rs 47,200, Resistance 1 - Rs 47,720, Resistance 2 - Rs 47,920. September Silver closing price Rs 67,137, Support 1 - Rs 66,700, Support 2 - Rs 66,000, Resistance 1 - Rs 67,500, Resistance 2 - Rs 68,000," he further mentioned.

“Gold is struggling for follow up buying near to its 100 DEMA level and becoming a sell on rise market. It’s becoming a bear case scenario as gold prices are making lower highs every day and seem we are again moving towards the critical support range of $1765-$1750 unless a fresh fundamental spart to jumpstart a price uptrend," said Sandeep Matta, founder, TRADEIT Investment Advisor.

“Gold of MCX is also trading with negative sentiments and seems failed to breakout. With rupee depreciating the outlook for the yellow metal is negative and we are continuously advising investors to stay away from long trades from past few days we further anticipate that relative volatility in the gold prices will increase in short run. Key level for GOLD August contract – Rs 47,608. Sell zone below – Rs 47,600 for the target of Rs 47,465-47,358. Buy zone above – Rs 47,625 for the target of Rs 47,35-47,858," he added.

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

first published:July 22, 2021, 09:36 IST