Gold Price Today, 26 October 2021: MCX Gold falls on weak global cues; may continue to trade choppy

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October 26, 2021 10:06 AM

Gold Rate Today, Gold Price in India on 26 October 2021: Gold prices were trading lower in India on Tuesday, mirroring the international rates.

Gold Rate Today, Gold Price Today in IndiaGold is trading above $1800 as hyperinflation worries are gripping the market

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading lower in India on Tuesday, mirroring the international rates. On Multi Commodity Exchange, gold December futures were trading Rs 80 or 0.16 per cent down at Rs 48,140 per 10 gram, as against the previous close of Rs 48,200. Silver December futures were ruling at Rs 65,960 per kg, down Rs 180 or 0.27 per cent. In the previous session, silver futures ended at Rs 66,139 per kg. Globally, yellow metal edged lower, weighed down by an uptick in the dollar as investors eye upcoming key central bank meetings this week. Spot gold fell 0.1 per cent to $1,805.96 per ounce. US gold futures was flat at $1,806.60.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

Gold is trading above $1800 as hyperinflation worries are gripping the market. Despite the US Fed stating that inflation is transitory, market participants don’t see Fed getting in front of the inflation curve. In May when inflation was increasing, US Fed stated that inflation is transitory and will fade out by the end of this year, now they have reiterated saying that inflation will be there till the middle to end of the next year so clearly, gold prices are going to benefit from these. There is nothing the Federal Reserve can do to fix the supply chain as this is not inflation driven by consumer demand but by supply constraints. It is only a matter of time before gold implodes above $1835. The only reason why gold is not above $1815 is that hedge funds are reluctant to jump into gold now. Their net long positions remain unchanged from last week so clearly, speculators are waiting for some more confirmation before jumping into the precious metal. In MCX, intraday support comes around 47900 while resistance comes at 48300. Bias is still on the long side and participants can only their long positions with stoploss of 47900.

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

COMEX gold trades marginally lower near $1805/oz after a 0.6% gain yesterday. Gold has rescaled $1800/oz indicating upward momentum and remains supported by inflation concerns, growth worries and renewed virus concerns. However, weighing on price is continuing strength in equity markets and weaker investor interest as is evident from ETF outflows. Gold may continue to witness choppy trade amid mixed factors however general bias may be on the upside amid increasing challenges to global economy.

Ravi Singh, Vice President & Head of Research, Share India Securities

Gold MCX is technically in a very strong uptrend taking cues from the Comex Gold which was also supported by increasing worries about problematic price inflation in US. The increasing demand in domestic gold due to improved retail buying and rising footfall at jewellery showrooms due to lucrative discounts and offers has hold the prices.

Buy Zone – 48000 for the target of 48350
Sell Zone Below – 47900 for the target of 47600

Buy Zone Above – 47300 for the target of 47500
Sell Zone Below – 47100 for the target of 46900

(The views in this story are expressed by the respective experts of the 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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