Gold price today: Yellow metal trades in India face resistance of Rs. 50,660
India Gold October futures rose marginally on September 22nd. Recognizing a positive trend in international spot prices, a day after the index fell more than 2 percent. On the Multi-Commodity Exchange (MCX), October gold contracts traded up 0.9 percent at Rs. 50,570 per 10 grams at 09:30 hrs.
Although the trend is slightly higher, experts expect the yellow metal to face resistance near Rs. 50,660 and keep the negative support levels at Rs. 50,000 – 49,800. Gold and silver prices crashed on Monday, with the US dollar index and global equities selling heavily. Global banking concerns, fear of a second phase lockdown in European countries have dampened global equities that support the US dollar index.
Uncertainty over further stimulus from the US Federal Reserve also cut both precious metals. The US dollar index rose again to 93.80 marks. Gold fell 2.36 percent to $1,911.60 a troy ounce, while silver fell 9.53 percent to settle at $24.39 a troy ounce. At MCX, gold settled at 50,471 per 10 grams with a loss of 2.41 percent. Silver settled at 61,316 per kg with a loss of 9.67 percent.
However, precious metals both collapsed amid concerns over HSBC Bank, uncertainty over further stimulus from the US Federal Reserve, a rebound in the dollar index. Fears of a second phase lockdown in the EU, experts suggest.
Prithvi Finmart Director (Head-Commodity & Currency Research) Mano Jain
“Global growth concerns and geopolitical tensions support precious metals to a lesser extent. We think these two precious metals are volatile today and are in the oversold zone, with some rebound in prices for today’s session,” Mano Jain said.
“If the dollar index gains further and both precious metals are pushed down, it will sell in a rising market for both precious metals. Gold has resistance to Troy ounces at $1,922 – 1,940 and supports for Troy ounces at $1,892 – 1,878,” he said. At MCX, gold is expected to face resistance near 50,660 – 50,800 and negatively, support at 50,000 – 49,800 levels, he added.
Sriram Iyer, Senior Research Analyst at Reliance Securities
U.S. Gains on the dollar and more U.S. The international bullion fell on Monday on uncertainty over the economic stimulus. U.S. and China tensions have prompted investors to shift their investments to the US dollar rather than gold or silver.
Domestic gold and silver fell on Monday, recognizing weak foreign prices. The domestic bullion could trade flat on Tuesday, tracking international prices. Technically, MCX Gold October gave a sharper correction than its 21-Daily Moving Average, which is kept below the 51,400 level, which picks up the negative moment to the 49,800 – 49,500 levels. Resistance is at the 50,700 – 50,900 level.
The MCX Silver December stock corrected more than 10% and is trading at 61,550 levels, indicating a negative trend to continue the 58,600 – 56,000 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Comex Gold 15 traded slightly lower at 1,915 / oz after declining 2.6% yesterday. Stability in the US dollar has put pressure on the price of gold. But support for prices ETF flows and growing concerns about the health of the US and European economies.
Gold, along with other commodities, fell sharply, but the recovery could see as soon as the price reaches the 1,900 / oz level, while the US dollar worries about the health of the US economy and the Fed’s exploitative attitude.