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Gold Price Today Nears Rs 47,300-Mark; 'Traders Must Create Fresh long Positions'

Gold price in India edged higher on Monday

Gold price in India edged higher on Monday

On the Multi-Commodity Exchange (MCX), October gold contracts rose to Rs 47,239 for 10 grams at 0945 hours on August 23

Gold price in India edged higher on Monday. On the Multi-Commodity Exchange (MCX), October gold contracts rose to Rs 47,239 for 10 grams at 0945 hours on August 23. Silver also witnessed a huge jump on Monday. The precious metal future jumped 0.34 per cent to Rs 61,928 on August 23. In the international market, gold price inched lower on Monday. Spot gold fell 0.1% to $1,779.12 per ounce by 0057 GMT. US gold futures were down 0.2% to $1,780.40. The dollar traded near the 9 month high hit last week.

The Federal Reserve Bank of Kansas City said its annual economic symposium in Jackson Hole, Wyoming, will take place on August 27 virtually. The decision came amid surging number of Covid-19 Delta variant cases. Chair Jerome Powell will give a speech at the event on the economic outlook.

“International gold and silver prices were flat this Monday morning in Asian trade. The dollar held near recent highs and could keep upside limited, although growing concerns over the economic fallout from the spread of the Delta coronavirus variant could losses in check. Against the backdrop of recent tapering hints from the US central bank, the spotlight shifts to the Fed’s annual get-together this week in Jackson Hole, Wyoming, which could shed further light on monetary strategy and timeline. Technically, LBMA Gold is trading below 21-Daily Moving Average which is placed at $1785 levels below which could see downside momentum $1775-$1768 levels. Resistance is at $1787-$$1795 levels. LBMA Silver above $23.00 level could see $24.10-$25.22 levels. Support is at $23.40-$22.65 levels," said Sriram Iyer, senior research analyst at Reliance Securities.

“Gold and silver are making bottom, Momentum indicator RSI creating a positive divergence in silver in four hourly chart. So traders are advised to create fresh longs positions in gold and silver. Traders should also focus important technical levels given below for the day: August gold closing price Rs 47,158, Support 1 - Rs 46,950, Support 2 - Rs 46,800, Resistance 1 - Rs 47,350, Resistance 2 - Rs 47,500. September Silver closing price Rs 61,721, Support 1 - Rs 61,100, Support 2 - Rs 60,500, Resistance 1 - Rs 62,350, Resistance 2 - Rs 63,000," said Amit khare, AVP- research commodities, Ganganagar Commodities Limited.

“The lack of market participation is continuing in the gold as the prices are hovering within the tight range and mostly unchanged on closing basis. The overall set up for the precious metal is currently not much encouraging as the precious metal is facing frequent selloff around $1800 level. Macro data in US are showing strong job data may influence Fed to stop being accommodative and further strengthen the dollar which may drag the gold prices down again to below $1700/oz," said Sandeep Matta, founder, TRADEIT Investment Advisor.

“Gold on MCX is also rangebound and somehow able to hold Rs 47,000 prices in past few days. The precious metal will have to cross and sustain above 48000 marks for the trend reversal confirmation. Participants who have strategic position are advised to hedge it while tactical positions must be align to key pivotal levels either side proactively during the day. Key level for GOLD AUG Contract – Rs 47,200. Buy Zone Above – Rs 47,200 for the target of Rs 47,335-47,500 Sell Zone Below – Rs 47,200 for the target of Rs 47,000-46,888," said Sandeep Matta.

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first published:August 23, 2021, 10:04 IST