Gold and silver prices suffered strong losses in early trading on the domestic futures market on August 12 as the coronavirus vaccine, the strength of the dollar index and USPPI, and core PPI numbers, which are better than the US, cut both precious metals.
On the Multi-Commodity Exchange (MCX), October gold contracts traded down 2.73 percent at Rs 50,513 per 10 grams at 09:10. Silver was down 6 percent at Rs 62,918 per kg.
In international markets, gold on Tuesday suffered its biggest fall in seven years. On Wednesday, it fell another 1 percent to $ 1,891, Reuters reported.
Experts point out that this is the right time to book profit on gold and silver and traders should be careful when taking any position in the bullion at these high levels.
Prices are now in the overbought zone. The dollar index has recovered from low levels due to Hawkish job data released last week.
“Approval for the first COVID-19 vaccine by Russia’s health ministry has put pressure on the bullion. Traders may book profit on higher levels and may go for a sell in gold and silver. However, global economic instability and geopolitical tension between the US and China may work as a supportive factor for bullion in the long run,” said Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex Gold December deals fell 2 percent to 1910 / oz after falling 4.6 percent yesterday.
Gold trade was weakened by US dollar, ETF low trifles, rising US bond yields, and Russia arguing for a vaccine for Covid-19.
A few days later, gold finally showed some correction, and falling below $ 2,000 / oz led to extended losses.
We may see some extended losses if the latest positive factors do not emerge, however, the price will be close to the $ 1900 / oz level.
Expert: Manoj Jain, Director (Head – Commodity & Currency Research) at Prithvi Finmart
Gold and silver plummeted yesterday after Russian President Vladimir Putin said Russia had made the first coronavirus vaccine and vaccinated her daughter first.
Gold and silver are in the overbought zone and are due for a correction. We expect both precious metals to remain volatile in today’s session and the rise in prices will be an opportunity to resell.
Gold for Troy ounces has a critical resistance at 95,955 and only the above shows some strength, which tests the support level of 1,920-1,896 for Troy ounces.
At the MCX, gold has strong resistance at Rs 52,220, and holding above it can only give some relief rally, otherwise, its support level will test the 51,330-51,000 level.
Silver also has critical resistance at 26.80 to the troy ounces and only the above shows some strength, which again tests the support level of 25.55-25 for the troy ounces.
At MCX, silver has key resistance at Rs 67,500 and the above only shows some relief rally. Otherwise, it will re-test its support level at 66,200-64,800 levels.
Momentum is still negative for both the precious metals and the selling growth strategy will work in today’s session.
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver fell on Tuesday amid profit bookings and COVID-19 vaccine hopes.
Prices were slashed after news organizations reported that Russia was the first country in the world to grant regulatory approval for the COVID-19 vaccine.
The dollar extended gains on Tuesday and weighed on prices.
SPDR Gold ETF Trust Fund fell 0.3 percent to 1,257.93 tonnes on Tuesday, reflecting sentiment.
However, the embarrassment was limited to weaker risk appetite, as the stalemate among U.S. lawmakers over the stimulus continued without a word when talks resumed on the new package.
International gold and silver weakened in Asian trade this Wednesday morning.
Technically, it opened this Wednesday morning at 9,900 levels below the negative note. Resistance is at the $ 1,920- $ 1,935 level. Support is kept at $ 1,850- $ 1,820 levels.
Domestic gold and silver fell on Tuesday on weak foreign exchange rates and a stronger rupee. The domestic bullion starts weak this Wednesday morning.
Technically, MCX gold can track weak foreign prices. Resistance Rs. 52,000-Rs.52,350 level, support at Rs.50,700-49,550 level.
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