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Gold Price Today Nears Rs 46,000; Over Rs 10,000 Down from All-Time High. Buy or Sell?

·4-min read

Gold price has continued to remain flat in India on Friday. The yellow metal prices has been under pressure through this week. On the Multi-Commodity Exchange (MCX), October gold future was trading flat at Rs 46,060, down 0.03 per cent at 0915 hours on September 17. Silver price saw a significant gain on Friday. The precious metal future increased 0.25 per cent to Rs 61,231.

In the international market, gold prices gained on Friday. Spot gold edged up 0.3 per cent to $1,758.10 per ounce by 0329 GMT, while US gold futures gained 0.2 per cent to $1,759.50, according to Reuters. Investors will keenly follow next week’s key US Federal Reserve policy meeting for Fed’s cue. The Federal Open Market Committee’s two-day policy meeting is scheduled to be held on September 21-22. The dollar held near three-week highs against a basket of major currencies and kept upside capped.

“International gold and silver have started flat on Friday early morning trade in Asia. Unless there is some geopolitical event or a Fed surprise, gold’s path is unlikely to change going into the FOMC meeting next week. Technically, LBMA Gold has given a correction from the $1790 level where it could see $1748-$1735 levels. Resistance is at $1762-$1775 levels. LBMA Silver is trading below $23.00 levels below which could see sideways to marginal downside momentum up to $22.30-$21.88 levels. Resistance is at $23.20-$23.55 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.

US retail sales unexpectedly increased in August by 0.7 per cent. Bullion traders also ignored slightly weak initial unemployment claims which rose to 332,000 last week from a pandemic low of 312,000 a week earlier, the Labour Department reported on Thursday.

“Stronger-than-expected US economic reports on Thursday evening, which rallied the US dollar index, helped to send gold and silver prices south. The near-term chart postures for both metals have deteriorated significantly this week, which is also inviting the shorter-term futures traders to play the short side of the markets. The other key outside market yesterday sees Nymex crude oil futures prices weaker and trading around $72.25 a barrel. Meantime, the yield on the benchmark US 10-year Treasury note is presently fetching 1.334 per cent,” said Amit khare, AVP- Research Commodities, Ganganagar Commodities Limited.

“On the domestic side, gold and silver futures on MCX could start flat this early Friday morning trade, tracking overseas prices. Technically, MCX Gold October below Rs 46,100 level could see a Bearish momentum up to Rs 45,900-45,600 levels. Support is at Rs 46,200-46,500 levels. MCX Silver December below Rs 61,500 level could see Rs 60,000-59,200 levels. Resistance is at Rs 61,900-63,500 levels,” Iyer added.

“Now gold and silver are trading at oversold zone, which means any time we can see a good short covering rally in bullions. Momentum indicator RSI also indicating the same, So positional traders are advised to create fresh buy positions especially in Gold in small dips near 45900-45700, traders should focus important technical levels given below for the day: October Gold closing price Rs 46,076, Support 1 – Rs 45,750, Support 2 – Rs 45,450, Resistance 1 – Rs 46,400, Resistance 2 – Rs 46,700. December Silver closing price Rs 61,077, Support 1 – Rs 60,200, Support 2 – Rs 69,400, Resistance 1 – Rs 62,000, Resistance 2 – Rs 62,750,” said Khare.

“The precious metal had a meltdown in the aftermath of better-than-expected US retail sales data which is one of the major parts of measuring US economic strength. A strong retail data could trigger a more hawkish commentary from Fed which further means tapering and higher interest rates just got a little closer. Gold on MCX also cracked vertically and closed just above 46,000 turning all technical indicators in the favor of bears. The safe heaven has fallen into danger zone and could anytime break 45000 if the levels of $1745/oz in US is not respected. Key level for gold – Rs 46,268, Buy Zone Above – Rs 46,275 for the target of Rs 46,400-46,550. Sell Zone Below – 46250 for the target of Rs 45,800-45,600,” said Sandeep Matta, Founder, TRADEIT Investment Advisor

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