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Huge Drops In Gold Price Today Nearly 2-Month Low – Check Latest Rates Here

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Huge Drops In Gold Price Today Nearly 2-Month Low – Check Latest Rates Here

Gold price in India witnessed a steep drop on Monday. The yellow metal have been under pressure in the past few sessions. On the Multi-Commodity Exchange (MCX), the gold futures tumbled 0.18 per cent to Rs 47,365 for 10 grams at 0940 hours on January 10.

Silver also saw a huge slump on Monday. The precious metal future dipped 0.36 per cent to Rs 60,388 for a kilogram on January 10.

In the international market, gold price was hovering around three-week low. Spot gold was little changed at $1,795.11 per ounce by 0234 GMT. US gold futures were down 0.2 per cent at $1,794.00. Traders eagerly wait for December US inflation data that could prompt the US Federal Reserve to reinforce earlier-than-expected rate hike.

Experts suggested that US December core Consumer Price Inflation might have risen 5.4 per cent annually after climbing 4.9 per cent in November. US nonfarm payrolls rose by 199,000 jobs last month amid worker shortages.

Gold is considered a hedge against higher inflation, but the metal is highly sensitive to rising US interest rates which increase the opportunity cost of holding non-yielding bullion.

Meanwhile, reflecting investor sentiments, data from CFTC showed that speculators exited net longs in COMEX Gold F&O by 3,893 contracts to 94,942, while speculators raised net longs in COMEX Gold F&O by 4,210 contracts to 21,909 in the week ending January 04, 2022.

Weak monthly non farm payrolls data could cap downside; however, investor focus will be US inflation numbers due this week. Technically, if COMEX February trades below $1792.35 levels, it could continue its bearish momentum up to $1786.35-$1775.25 levels. Resistance zone is at $1803.45-1809.45 levels. Domestic gold prices could start flat this early Monday morning tracking a subdued start in the overseas prices.

Technically, if MCX Gold February trades below Rs 47,445 level it could continue its bearish momentum up to Rs 47,300-47,160 levels. Resistance zone is at Rs 47,590-47,730 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.

“Gold prices are trading with a downward bias and may take support near Rs 47,200 levels. The trend may be used for long covering and for fresh positions, levels must be watched. Buy Zone Above – Rs 47,450 for the target of Rs 48,000.

Sell Zone Below – Rs 47,200 for the target of Rs 47,000, said Dr Ravi Singh, vice president and head of research, ShareIndia.

“As per daily technical chart gold and silver both are now trading at demand zone We can see a short covering rally in bullion’s any time. Momentum indicator RSI also indicating the same in hourly as well as daily chart, So traders are advised to create fresh buy positions near given support levels, traders should focus important technical levels given below for the day:

February Gold closing price Rs 47,452, Support 1 – Rs 47,300, Support 2 – Rs 47,150, Resistance 1 – Rs 47,500, Resistance 2 – Rs 47,630. March Silver closing price Rs 60,607, Support 1 – Rs 60,000, Support 2 – Rs 59,600, Resistance 1 – Rs 60,800, Resistance 2 – Rs 61,500,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.

On silver price, Iyer said, “International silver prices have started flat to lower this early Monday morning in Asian trade as a rebound of the US Dollar this Monday could cap upside. Technically, if COMEX March trades below $22.270 levels, it could continue its bearish momentum up to $22.080-$21.755 levels. Resistance zone is at $22.600-$22.785 levels. Domestic silver prices could start flat to marginally weaker this early Monday morning tracking the overseas prices. Technically, if MCX Silver March trades below 60445 levels, it could continue its bearish momentum up to Rs 60,170-59,735. Resistance zone is at Rs 60,885-61.160.(Credit: NEWS18)

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