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Gold Price Today Drops Sharply; Over Rs 9,300 Down from Record High ahead of Festivals

Gold Price in India rise on October 12

Gold Price in India rise on October 12

Gold price today, October 11, 2021: On MCX, December gold price jumped 0.33 per cent to Rs 46,880 at 0942 hours on October 11

Gold price in India continued to drop on Monday, tracking its international peers. Dip in US dollar prices and the anticipation of US Federal Reserve would start paring stimulus this year has kept the bullion under pressure in the last few weeks. On the Multi-Commodity Exchange (MCX), December gold price fell 0.33 per cent to Rs 46,880 at 0942 hours on October 11. Silver price also dropped on Monday. On MCX, Silver December future decreased 0.12 per cent to Rs 61,725 on October 11.

In the international market, gold price remained flat on Monday. Spot gold was flat at $1,756.25 per ounce by 0053 GMT. US gold futures were unchanged at $1,756.80. The dollar index dropped 0.1 per cent. The benchmark US 10-year Treasury yields touched its highest level since early June on Friday. US employers added 194,000 jobs in September, well below expectations. However, upward revisions to prior month’s data mean the economy has now made up for half of the jobs deficit it faced in December.

Some experts believed that weaker-than-expected non-farm employment numbers in August and September may keep the Federal Reserve from tapering its monetary policy. However, others opined the overall upbeat internals of jobs report will not alter the Fed’s trajectory of tapering."But at the least, jobs data injected a bit more uncertainty into the marketplace thinking on the matter. Judging from the reaction of the US Treasury market, bond traders believe the Fed will remain on its ‘sooner rather than later’ track for tightening US monetary policy," said Amit khare, AVP — research Commodities, Ganganagar Commodity Limited.

“International gold prices have started flat this Monday morning in Asian trade as the markets was caught between a dip in the dollar and fears that the US Federal Reserve would start paring stimulus this year despite weak jobs data. Technically, LBMA spot Gold has formed a Shooting star Candlestick pattern which is a sign for Bearish Reversal where below $1760 will continue its Bearish momentum up to the support zones at $1740-$1727 levels. Resistances zones are near $1765-$1776 levels," said Sriram Iyer, senior research analyst at Reliance Securities.

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“Domestic gold prices could start flat this Monday morning, tracking overseas prices. Technically, if MCX Gold December trades below Rs 47,000 the markets could continue its Bearish momentum up to Rs 46,700-46,400 levels. Resistance at Rs 47,100-47,300 levels," Iyer added.

On silver price, analyst mentioned, “International silver prices have started flat this Monday morning in Asian trade. Technically, if LBMA Silver continues below $23.20 level the markets could continue its downside momentum up to $22.30-$21.20 levels. Resistance is at $23.50-$23.77 levels. Domestic silver prices could start flat this Monday morning, tracking overseas prices. Technically, if MCX Silver December trades below Rs 62,000 level the markets could continue its downside momentum up to Rs 61,000-59,500 levels. Resistance is at Rs 62,000- 63,000 levels."

“Now the charts of both metals are looking strong and Indian festival seasons are also going so we can see continuous buying in Gold Silver for this festival season, Momentum indicator RSI also indicating the same, So traders are advised to create fresh long positions in gold and silver in small dips, traders should focus important technical levels given below for the day: December Gold closing price 47037, Support 1 - Rs 46,900, Support 2 - Rs 46,700, Resistance 1 - Rs 47,200, Resistance 2 - Rs 47,350. December Silver closing price 61801, Support 1 - Rs 61,200, Support 2 - Rs 60,700, Resistance 1 - Rs 62,300, Resistance 2 - Rs 62,800," Khare added.

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first published:October 11, 2021, 09:53 IST