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Gold Price Today Drops for Second Day; Over Rs 8,800 Down from Record High; Silver Falls

The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22, has been fixed at Rs 4,732 per gram of gold

The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22, has been fixed at Rs 4,732 per gram of gold

Gold Price Today, September 7, 2021: On MCX, October gold contracts dipped 0.07 per cent to Rs 47,392 for 10 grams at 0915 hours

Gold price in India continued to drop for the second consecutive day on Tuesday. The precious metal started the week with a huge drop in the prices in domestic market. On the Multi-Commodity Exchange (MCX), October gold contracts dipped 0.07 per cent to Rs 47,392 for 10 grams at 0915 hours on September 7. Following the precious metal, silver also witnessed a sharp fall on Tuesday. Silver December future plummeted 0.21 per cent to Rs 65,155 on September 7.

India’s gold imports in August nearly doubled to the highest in five months on strong demand. The weaker prices prompted jewellers to ramp up purchases for the festive season. India imported 121 tonnes of gold in August, compared to 63 tonnes a year earlier.

In the international market, gold price remained firm on Tuesday. Spot gold rose 0.2 per cent to $1,826.75 per ounce by 0108 GMT. Yellow metal price had touched a two-and-half-month high last week following a disappointing US non-farm payrolls data, Reuters mentioned.

“The most active call strikes for September expiry option gold contract are Rs 48,000 and Rs 49,000. The most active Put strikes for September expiry option gold contract are Rs 45,000, Rs 46,000 and 47,000," Iyer mentioned.

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“International gold prices have started flat this Tuesday morning in Asian trade. Technically, LBMA Gold breakout above $1823 level could see upside movement up to $1835-$1858 levels. However below $1817 could see a downside pressure up to $1810-$1800 levels. Domestic gold prices could start flat this Tuesday morning, tracking overseas prices. Technically, MCX Gold October hold a strong support near Rs 47,350-47,200 levels. Resistance is at Rs 47,550-47,700

levels," said Sriram Iyer, senior research analyst at Reliance Securities for your reference.

On silver future, Iyer said, “International silver prices have started flat this Tuesday morning in Asian trade. Technically, LBMA Silver above $24.00 level could see $25.10- $25.44 levels. Support is at $23.20-$22.70 levels. Domestic silver prices could start flat this Tuesday morning, tracking overseas prices. Technically, MCX Silver December above Rs 65,000 level could see Rs 65,600-66,100 levels. Support is at Rs 64,500-63,700 levels."

“On the weekly chart, it seems easy to see why gold is stuck in a strong consolidation zone. It is best to pick up this timeframe at month-end and as August just closed the downside rejections seem evident. Another key consideration has to be the lack of volume over the last 5-6 weeks there seemed to be no real conviction in any of the downside moves," said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.

“We have seen a huge short covering rally in bullions on last Friday. Now technical charts are showing some profit booking on daily as well as four hourly chart. Momentum indicator RSI also indicating the same. So traders are advised to create fresh short positions in Gold and Silver near given resistance levels, traders should also focus important technical levels given below for the day: October Gold closing price Rs 47,425, Support 1 - Rs 47,300, Support 2 - Rs 47,000, Resistance 1 - Rs 47,500, Resistance 2 - Rs 47,700. December silver closing price Rs 65,292, Support 1 - Rs 65,000, Support 2 - Rs 64,500, Resistance 1 - Rs 65,600, Resistance 2 - Rs 66,000," he added.

“Gold has been a frustrating trade as the precious metal struggles to find bullish momentum despite currency weakening a and real interest rates remain well entrenched in negative territory. Prices are trading in the small tight range and consolidating around Rs 47,500 level. Globally, the precious metal has some near term bullish technical advantage however facing some difficult headwinds and producing the closing above $1835/0z will be a key challenge for the market participants to pass. Key level for gold August contract – Rs 47,386. Buy Zone Above – Rs 47,400 for the target of Rs 47,550-47,700. Sell zone below – Rs 47,375 for the target of Rs 47,200-47,040," said Sandeep Matta, founder,

TRADEIT Investment Advisor.

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first published:September 07, 2021, 09:43 IST