Gold prices were flat in India on Thursday amid mixed global cues. From a record high level, gold prices have plunged Rs 11,301 per 10 gram or 20.11 per cent.
Gold on MCX hit an all-time of Rs 56,191 per 10 grams in August 2021. Image: Reuters
Gold prices were flat in India on Thursday amid mixed global cues. Gold was trying to make some sort of comeback as precious metal was able to overcome market forces creating strong headwinds (rising US Dollar and bond yields) and closed at high yesterday after conclusion of two-day testimony of both Chairman of the Federal Reserve Jerome Powell and the secretary of the United States Treasury Department Janet Yellen, says Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities. On MCX, gold April futures were trading Rs 30 or 0.07 per cent up at Rs 44,890 per 10 grams as against the previous close of Rs 44,860. Silver May futures were ruling at Rs 65,157 per kg, down Rs 88 or 0.13 per cent, as compared to a previous close of Rs 65,245 on the Multi Commodity Exchange. Gold on MCX hit an all-time of Rs 56,191 per 10 grams in August 2021. Since then, the yellow metal has been witnessing volatility.
From a record high level, gold prices have plunged Rs 11,301 per 10 gram or 20.11 per cent. Patel added that currently, gold prices have struggled to find direction after falling from their highs and needs to break Rs 45250 on MCX to find upside direction. Meanwhile, the selling pressure has stopped and gold is trying to find some footing. “Rs 44,150 is strong support for the precious metal and below that, we could see gold bulls giving up and bears taking over. This week we expect gold to trade in the range of Rs 44,500-44,200,” he told Financial Express Online.
On MCX, gold has been consolidating between Rs 45,100 and Rs 44,550 since early March resulting in a rising channel pattern. Rajesh Palviya, Head –Technical & Derivatives Research, Axis Securities Ltd, told Financial Express Online that it is likely to continue moving in this range unless it breaches Rs 44,550 per 10 gram, this breakdown would push prices towards Rs 44,000 then Rs 43,700 per 10 gram.
International spot gold prices steady
Internationally, gold prices were steady on Thursday as support from easing US Treasury yields was offset by a strong dollar, which emerged as a preferred safe-haven amid growing concerns about extended lockdowns in Europe. Spot gold was little changed at $1,734.81 per ounce while US gold futures were steady at $1,732.90 per ounce, according to Reuters. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 1,043.03 tonnes on Wednesday from 1,045.36 tonnes Tuesday.
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