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Gold Price Today Sees Huge Drop, Down Over Rs 8,000 from Record High. Buy or Sell?

Gold price today sees huge slump

Gold price today sees huge slump

Gold Price Today: International spot gold and silver prices have started weaker this Thursday morning in Asian trade, said analyst

Gold price dropped in the domestic market on Thursday. On the Multi-Commodity Exchange (MCX), August gold contracts slumped 0.28 per cent to Rs 47,776 for 10 grams at 0905 hours on July 8. Silver also witnessed a massive fall on Thursday. September silver futures were trading 0.52 per cent lower at Rs 69,003 a kilogram.

In the international market, gold held steady on Thursday as lower US Treasury yields countered a stronger dollar. Spot gold was little changed at $1,803.01 per ounce, as of 0109 GMT. US gold futures edged 0.1% higher to $1,804.30 per ounce, according to Reuters. Benchmark US 10-year Treasury yields dropped to their lowest since Feb. 19. The minutes from the Federal Reserve’s June meeting showed officials felt its substantial progress goal on economic recovery has not yet been met.

“Lower US treasury yields and worries over the rise in new virus cases due to the more virulent Delta variant are keeping gold prices steady near $1800 an ounce. Meanwhile, a strong US dollar and optimistic global economic sentiment continue to dampen its safe asset appeal. Prices continue to be choppy inside $1820-1748 levels and breaking any of the sides would suggest a short-term direction for the commodity. Anyhow, a close below $1745 is a bearish signal for the metal," said Hareesh V, research head commodities at Geojit Financial Services.

“The June FOMC minutes confirm that the Federal Reserve is edging closer to tapering asset purchases. According to the release, various participants mentioned that they expected the conditions for beginning to reduce the pace of asset purchases to be met somewhat earlier than they had anticipated at previous meetings. At the same time, the minutes also showed that the substantial further progress it wanted to see has not been met. The US Dollar ended higher, however the benchmark 10-year Treasury yields hit their lowest in more than four months and lent support," said Sriram Iyer, senior research analyst at Reliance Securities.


“International spot gold and silver prices have started weaker this Thursday morning in Asian trade after minutes of the Federal Reserve’s June policy meeting confirmed the world’s biggest central bank is moving toward tapering its asset purchases as soon as this year. So, the US Dollar extended gains this Thursday morning in Asian trade and will weigh on prices. Technically, LBMA Gold holds a resistance zone near $1810-$1820 levels. Support is at $1790-$1781 levels. LBMA Silver holds a 200-Daily Moving Average which is placed at $26.40 level above which will continue its Bullish momentum & further could see $26.55-$27.10 levels. Support is at $25.90-$25.40 levels," Iyer said.

“Domestic gold and silver prices could start weaker this Thursday morning, tracking overseas prices. On the domestic front, MCX gold August holds a strong support near Rs 47,700-47,600 levels. Resistance is at Rs 48,100-48,300 levels. MCX Silver September holds a resistance 50-DMA near Rs 70,480 levels above which could see a bullish momentum up to 71200-72100 levels. Support is at Rs 68,900-67,900 levels," he further mentioned.

“Gold showing more strength comparison to Silver in daily chart, So traders are advise create long position in Gold rather than Silver and should also focus important technical levels given below for the day: August gold closing price Rs 47,910, Support 1 - Rs 47,700, Support 2 - Rs 47,500, Resistance 1 - Rs 48,100, Resistance 2 - Rs 48,400. September Silver closing price Rs 69,365, Support 1 - Rs 68,770, Support 2 - Rs 68,200, Resistance 1 - Rs 70,000, Resistance 2 - Rs 70,500," said Amit Khare, AVP-research commodities, Ganganagar Commodities Limited.

“The perceived optimistic tone of FOMC’s minutes has helped gold to close above $1800 an ounce after three weeks of sideways consolidation. Central bank buying and higher energy prices are offering bullish tailwinds to precious metal more particularly gold which is also known as inflation hedge commodity. Technically, the sentiments are bullish for the gold and after cross the $1814 level it will reach to $1835-$1850 in no time," said Sandeep Matta, founder, TRADEIT Investment Advisor.

“Gold on MCX also traded firm on global clues and closed almost around the day high levels. Market participants can expect fireworks in prices after it start trading above 48000 levels. Key level for GOLD August contract – Rs 47,855. Buy Zone Above – Rs 47,900 for the target of Rs 48,050-48,300. Sell Zone Below – Rs 47,850 for the target of Rs 47,710-47,575," Matta added.

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first published:July 08, 2021, 09:15 IST