Gold price in India rose on Monday on the back of steady strengthened dollar index. On the Multi-Commodity Exchange (MCX), October gold contracts jumped 0.19 per cent to Rs 46,893 for 10 grams at 0910 hours on September 13. The yellow metal had witnessed few turbulent sessions last week. Silver continued to fall even on Monday. The precious metal dropped 0.36 per cent to Rs 63,362 on September 13.
In the international market, gold prices were flat on Monday. All eyes are on US consumer prices due this week. Spot gold was flat at $1,787.40 per ounce, as of 0114 GMT, after having recorded a weekly decline of 2.1 per cent, Reuters reported. US gold futures slumped 0.3 per cent to $1,786.90. The dollar index slightly strengthened in the Asian trade, making gold more expensive for holders of other currencies.
“International gold prices have started flat to weaker this Monday morning in Asian trade. Upside remained capped as the dollar held firm, while cautious investors awaited readings on US consumer prices due this week that could be crucial to Federal Reserve’s decision on when to exit its super-supportive policy. Technically, LBMA Gold has given a correction below $1790 level indicating for Bearish momentum to continue up to $1777-$1760 levels. Resistance is at $1795-$1807 levels. Domestic gold prices could start flat to weaker this Monday morning, tracking overseas prices. Technically, MCX Gold October below Rs 47,000 level could see a Bearish momentum up to Rs 46,600-46,400 levels. Resistance is at Rs 47,000-47,150 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
On silver price, Iyear said, “International silver prices have started flat this Monday morning in Asian trade. Technically, LBMA Silver holds a resistance of 50-DMA which is placed at $24.80 levels below which could see sideways to marginal downside momentum up to $23.50-$22.88 levels. Resistance is at $23.85-$24.00 levels. Domestic silver prices could start flat this Monday morning, tracking overseas prices. Technically, MCX Silver December below Rs 63,800 level could see Rs 63,000-62,300 levels. Resistance is at Rs 64,000-64,700 levels.”
“A higher US dollar index this week is a negative outside market force working against the metals. October gold futures are up by $4.61 trading at $1,792.31. December Comex silver is up by $0.011 trading at $23.759 an ounce. The other key outside market yesterday sees Nymex crude oil futures prices higher and trading around $69.78 a barrel. Meantime, the yield on the benchmark US 10-year Treasury note is presently fetching 1.333 per cent,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
“Now the technical chart are again showing some short covering rally in bullions, Momentum indicator RSI also indicating the same in hourly as well as 4 hourly chart, So traders are advised to create fresh buy positions in Gold and Silver in small dips near given support levels, traders should focus important technical levels given below for the day: October gold closing price Rs 46,806, Support 1 – Rs 46,600, Support 2 – Rs 46,400, Resistance 1 – Rs 46,950, Resistance 2 – Rs 47,100. December Silver closing price Rs 63,592, Support 1 – Rs 63,100, Support 2 – Rs 62,500, Resistance 1 – Rs 64,000, Resistance 2 – Rs 64,600,” Khare added.
“Gold prices are vulnerable after the steel fall last week and trading below $1790/oz while higher treasury yield and strong dollar are key drivers for this price correction. The longer it stays below $1800 the more it at risk of another sell off with next key daily support at $1700/oz. The volatility in the global equity markets is increasing which could be the new catalyst the gold market participants are currently eyeing at. Gold on MCX is also trading with negative biases and all strategic position should be hedged properly. Key level for gold – Rs 46,848. Buy zone above – Rs 46,860 for the target of Rs 46,944-47,050.
Sell zone below – Rs 46,840 for the target of Rs 46,750-46,600,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
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