Gold Price Today, 10 Aug 2021: MCX Gold up, global rates fall to multi-month lows; charts show more downside

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August 10, 2021 10:14 AM

Gold Rate Today, Gold Price in India on 10 August 2021: Gold prices in India were trading firm on Tuesday, even as rates in the international market languished near multi-month lows

Gold Rate Today, Gold Price Today in IndiaGold is expected to claw back around Rs 46300 after which it will wait for fresh triggers from US CPI data.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading firm on Tuesday, even as rates in the international market languished near multi-month lows. On Multi Commodity Exchange, gold October futures were up half a per cent or Rs 203 to Rs 46,089 per 10 gram as against the previous close of Rs 46,095 per 10 gram. Silver September futures surged Rs 561 or 0.90 per cent to Rs 63,198 per kg. In the previous session, silver closed at Rs 62,637 per kg. Globally, gold prices were hurt by a rise in US bond yields and a stronger dollar after robust US jobs data last week raised bets over the Federal Reserve tapering stimulus earlier than expected. Spot gold was little changed at $1,730.47 per ounce. US gold futures edged 0.4% higher to $1,732.90 per ounce.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

Gold prices saw a flash crash in early Asian trading on Sunday night when volume was relatively low. Gold touched $1682 before recovering back to $1732. The flash crash was a follow up of Friday selling as US jobs data came better than expected prompting investors that US Fed might taper its asset purchase program sooner than expected. This shifted gold’s sentiment from bullish to bearish. Although the low in gold yesterday matched the double bottom that occurred at the beginning and end of March 2021, and the $68 recovery off of the intraday low was respectable indicating short covering. With the market focus on jobs over, for now, the short-term direction of precious metals could be dictated by U.S. inflation that is due on Wednesday Aug 11.

Majority of the short positions have been covered in gold and that is why we have not seen any follow up selling yesterday. Gold is expected to claw back around Rs 46300 after which it will wait for fresh triggers from US CPI data. On the downside, level of 45500 is still open if inflation comes hotter than expected as that will prompt US Fed to increase interest rate sooner than expected.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities

COMEX gold trades 0.5% higher near $1735/oz after a 2.1% decline yesterday when it tested March lows. Gold inched up on dip buying and is supported by increased geopolitical tensions, rising virus cases, rising inflationary pressure and concerns about Chinese economy. However, weighing on price is firmness in the US dollar and weaker investor interest. The general bias for gold is on the downside amid increased debate about Fed’s monetary tightening; however, the recent sell-off seems overdone and some recovery is possible.

NS Ramaswamy, Head of Commodities, Ventura Securities

Technically, MCX Gold Oct prices are looking negative for intraday. On a daily chart, MCX Gold prices were trading below key support levels of the Trend line and 200-day moving averages, Which suggest that price will further drag down towards 45500/45000 levels in the coming trading sessions. On the upside, down side opening gap (46,500) will act as a strong resistance zone for the short-term period. On the other hand, Momentum indicator RSI is trading below the negative zone (26 levels) which suggests that more weakness can be expected in the gold price in the coming trading sessions.

On the Comex front, the Gold price is looking weak on the daily chart. However, it is going to take strong support at $1720/ounce levels approximately and break below which price can drag down towards $1680 to $1660/ounce levels.

MCX Silver price is taking strong support at the horizontal trend line which comes around (62,300) on a daily closing basis. Going forward, we may see a relief rally in the silver price from here or likely to consolidate in the range of 62300 to 64,500 levels for the next few trading sessions. However, more weakness can be expected in the Silver price, if it closed below key support levels of 62530.

(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

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