Gold prices in India witnessed a huge slump on Monday. On the Multi-Commodity Exchange (MCX), gold futures dropped 0.93% at Rs 48,449 for 10 grams at 1215 hours IST. The yellow metal hit lowest in the last one week, tracking international spot gold prices. Silver too tanked on June 14. July silver futures were trading 0.74 per cent lower at Rs 71,694 a kilogram.
In the international market, gold prices hit a more than one-week low on June 14. The cautious investors awaited the outcome of the US Federal Reserve policy meeting this week. Spot gold was down 0.6% at $1,864.61 per ounce, as of 0536 GMT, its lowest since June 4. US gold futures fell 0.7% to $1,866 per ounce, Reuters reported.
Gold failed to hold the $1,900 an ounce level as it wrapped up the week. And prices are said to remain choppy until the $1,950 an ounce level is reached, where the new buyers would come in to take gold to $2,000.
“Gold and Silver both are showing some profit booking again on daily technical chart. So traders are advise to go for short in small pullback and traders should also focus some important technical levels given below for the day," said Amit Khare, AVP — research commodities, Ganganagar Commodities Limited.
“August gold closing price Rs 48,903, Support 1 - Rs 48,600, Support 2 - Rs 48,300, Resistance 1 - Rs 49,200, Resistance 2 - Rs 49,500. July silver closing price Rs 72,227, Support 1 - Rs 71,700, Support 2 - Rs 70,500, Resistance 1 - Rs 72,700, Resistance 2 - Rs 73,300," he added.
“Gold is facing a strong resistance at $1900 and seems waiting for the fed’s action. We are anticipating a fall till $1856-$1839 where the prices will try to make room for a strong upside swing. The discount in gold to crude ratio is also increasing which fundamentally will not last for the longer due to the low elasticity of supply," said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Key level for gold August contract – Rs 49,056. Buy Zone Above – 49060 for the target of Rs 49,240-49,450. Sell Zone Below – Rs 49,000 for the target of Rs 49,700-48,510," he added.
“International spot gold and silver prices are trading modestly weaker on Monday morning in Asian trade weighed down by a stronger dollar. Market participants now eye this week’s US Federal Reserve policy meeting. Technically, LBMA Gold Spot has broken below its 21 Daily Moving Average at $1887 level and further breakdown below $1870 levels could pull prices to $1860-$1847 levels. Resistance is at $1879-$1888 levels. LBMA Silver below $28.30 will continue its bearish momentum and could see further downside movement up to $27.40-$26.70 levels," said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold and silver prices could start weaker on Monday morning, tracking overseas prices. On the domestic front, if MCX Gold August breaks below 48700 levels, it could witness a Bearish momentum up to Rs 48,550-48300 levels. Resistance is at Rs 48,900-49,100 levels," Iyer added.
“Physical demand in India could improve going forward as restrictions in several states have started to ease. However, discounts of up to $12 an ounce were still offered over official domestic prices," he further mentioned.