Gold price in India dropped below Rs 46,000-mark on Tuesday. Gold price remained under pressure since last week despite an unchanged monetary policy by the US Federal Reserve. On the Multi-Commodity Exchange (MCX), October gold price tanked 0.24 per cent to Rs 45,960 per 10 grams at 1115 hours on September 28. Silver continued to dip on Tuesday. The precious metal price slumped 45 per cent to Rs 60,361 per kg. In the international marker gold price eased on Tuesday. Spot gold fell 0.1 per cent to $1,748.01 per ounce by 0115 GMT. US gold futures were down 0.3 per cent to $1,747.50. The 10-year US Treasury yields climbed to their highest level in three months. The dollar index was up 0.1 per cent.
US Federal Reserve officials stated that tightening of the monetary policy depends on the steady expansion in the US labor market. Investors are expected to have a keen eye on the US employment data for September 21 for more cues on the central bank’s monetary policy shift, believed analysts.
“Any positive economic data set by US is expected to increase bets towards withdrawal of the economic support by the Federal Reserve which might strengthen the dollar and weigh on the dollar priced bullions,” said Angel One Limited.
Several key officials including US Federal Reseve chairman Jerome Powell are scheduled to speak this week. US treasury secretary Janet Yellen will also testify this week. Moreover, investors will keenly follow the speeches from European Central Bank (EBC) president Christine Lagarde Bank of England (BOE) governor Andrew Bailey and Bank of Japan governor Haruhiko Kuroda for more cues on the global economy.
“The higher prices and hiring difficulties seen as the US economy reopens from the pandemic could prove ‘more enduring than anticipated’ and the Federal Reserve would move against unchecked inflation if needed, Fed Chair Jerome Powell said in remarks prepared for delivery to the Senate Banking Committee. Technically, LBMA Gold above $1755 could see upside momentum where it holds a support zone near $1750-$1760 levels. Breakdown below $1750 will continue to hold Bearish trend $1726-$1710 levels. Resistance is at $1762-$1775 levels. Technically, MCX Gold December above Rs 46,000 could see a upside momentum up to Rs 46,300-46700 levels. Support is at Rs 45,800-45,700 levels. International silver prices have started flat this Tuesday morning in Asian trade,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Technically, LBMA Silver above $22.50 level could see sideways to marginal upside momentum up to $22.80-$23.30 levels. Support is at $22.30-$22.00 levels. Domestic silver prices could start flat this Tuesday morning, tracking overseas prices. Technically, MCX Silver December above Rs 60,300 level could see Rs 60,900-61,800 levels. Support is at Rs 59,500-58,700 levels,” Iyer added.
“December gold futures were last up $0.40 at $1,752.20. December Comex silver was last up $0.265 at $22.69 an ounce. Some mild some short-covering by futures traders and mild safe-haven buying ahead of key US government spending events that occur late this week are being offset by gold’s bearish near-term technical posture. The key outside markets today see the US dollar index slightly firmer. Nymex crude oil futures prices are higher, at a three-year high, and trading around $75.40 a barrel. That’s also bullish for the metals. The 10-year US Treasury note yield is presently fetching 1.446 per cent. Recent rising bond yields are bearish for safe-haven gold and silver,” said Amit khare, AVP — research commodities, Ganganagar Commodity Limited.
“We have seen some short covering rally in gold and silver at bottom levels, which may continue for next few trading sessions, Both metals are trading at oversold zone, Momentum indicator RSI also indicating the same and creating a strong positive divergence in four hourly as well as daily chart. So traders are advised to create fresh long positions in gold and silver in small dips, traders should focus important technical levels given below for the day: October Gold closing price Rs 46,069, Support 1 – Rs 45,850, Support 2 – Rs Rs 45,700, Resistance 1 – Rs 46,250, Resistance 2 – Rs 46,500. December Silver closing price Rs 60,634, Support 1 – Rs 60,000, Support 2 – Rs 59,300, Resistance 1 – Rs 61,200, Resistance 2 – Rs 61,700,” he added.