Gold prices in India rise after falling ₹1,500 in one day

New Delhi: Gold and silver prices in India edged higher on Friday, after both the metals fell steeply in the previous session. On Multi Commodity Exchange, gold August futures were trading Rs 153 or 0.33 per cent up at Rs 47,111 per 10 gram. In the previous session, yellow metal prices tanked Rs 1,548 and ended lower at Rs 46,958 per 10 gram. Silver July futures were trading Rs 732 or 1.08 per cent higher at Rs 68,331 per kg. On Thursday, silver prices crashed and fell Rs 3,869 and settled at Rs 67,599 per kg. Globally, gold prices shed over 2 per cent on the US Federal Reserve’s hawkish tone on monetary policy. Spot gold fell 2 per cent to $1,776.10 per ounce, having earlier touched its lowest since May 3 at $1,766.29. U.S. gold futures settled down 4.7 per cent at $1,774.80, according to Reuters.

COMEX gold trades 0.5% higher near $1783/oz after a sharp 4.7% decline yesterday when it slumped to April lows. Gold has edged up on dip buying and pause in US dollar’s recent gains, renewed virus concerns and mixed economic data. However, weighing on price is Fed’s monetary tightening expectations and weaker investor interest as is evident from ETF outflows. Gold is seeing some relief rally however general bias may remain on downside unless the US dollar corrects sharply.”

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded firm with spot gold prices at COMEX were trading near $1786 per ounce in the morning trade. The yellow metal halted decline on Friday after falling nearly 5% on Thursday. Gold prices witnessed sell off on stronger dollar on US FED tapering signal. The FED hinted at a hawkish stance by 2023 which boosted buying in dollar with outflow from safe haven asset. Gold prices may see some pullback while short term bias remains bearish. We expect gold prices to trade sideways to down for the day with COMEX gold support at $1760 and resistance at $1800 per ounce. MCX Gold August futures support lies at Rs 46,800 and resistance at Rs 47.500 per 10 gram.

Anuj Gupta, VP – Commodity and Currencies Research, IIFL Securities

Yesterday, we noticed that gold prices corrected sharply on the back of an optimistic Fed view on US economy and expectation of hiking interest rates two times by year 2023. This impacted on dollar and bond yield increased sharply. Optimism on the US economy faded out safe haven demand of Gold and gold trading on 6 week’s low level. We are expecting for short term gold may trade lower however depreciation in rupee and higher inflation may curb the sharp fall in Gold. For Short term traders can go for a sell in gold at 47200 with the stoploss of 47550 for the target of 46500 levels. Prices are also correcting in the physical market as there is no marriage and festival demand. We advise investors to wait for a lower level to buy.

Jay Thakkar, VP and Head of Equity Research, Marwadi Shares and Finance

With the rise in US DOLLAR INDEX since a couple of days the bullions have seen a hit. We anticipated that the dollar index would rise and it happened as anticipated. The DXY is likely to extend its gain upto $93.5 in the short term as it has reversed from oversold territory. This indicates that the bullions will remain under pressure for the short term. Now, in the international markets, gold is expected to fall till $1685-$1650 in the medium term whereas in the short term it is likely to extend its fall till $1750. On the upside the is a resistance at $1866 in the medium term and till those levels aren’t taken off the short to medium term bias remains negative on gold. The MCX gold is likely to continue its fall till 46400 in the near term and once that gets broken it will correct till 43500 levels. On the upside the resistance is pegged at 48105 on immediate basis and till that is not overlapped the overall trend remains negative in the short to medium term.