Gold Price drops, rates below Rs 48,000

On Monday, Gold prices edged lower in the domestic markets. Gold futures on MCX were down merely 0.10 per cent, or Rs 47, at Rs 47,954 per 10 gram. Silver futures traded marginally up 0.03 per cent, or Rs 23, at 67,870 per kg.

Ravindra Rao of Kotak Securities said, "ETF investors moved to sidelines after brief inflows last week. Gold has come under pressure after failing to break past recent highs and while choppy trade is likely, prices may remain supported by increasing economic uncertainty and Fed's less hawkish stance." 

"We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,795 and resistance at $1,833 per ounce. MCX Gold October support lies at Rs 47,800 and resistance at Rs 48,300 per 10 gram," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

“The second quarter of 2021 was marked by widespread regional lockdowns following a rise in Covid-19 infections. Unlike the previous year when a national lockdown took businesses by surprise, this quarter was relatively better as businesses were more prepared. Demand in Q2 2021, showed a 19.2 per cent year-on-year increase on a very low base of Q2’ 2020, the impact was, however, severe as it muted demand during Akshaya Tritiya and wedding season in Q2,” said Somasundaram PR, regional chief executive officer, WGC India, news agency PTI reported. 

As reported by News 18, Sriram Iyer, senior research analyst at Reliance Securities said, “Domestic gold and silver prices could start higher this Friday morning, tracking overseas prices. On the domestic front, if MCX Gold October trades below Rs 48,000 we can witness prices fall up to Rs 47,900-47,700 levels. Resistance is at Rs 48,150-48,300 levels. MCX Silver September holds a resistance Rs 68,300-69,000 levels. Support is at Rs 67,500-66,900 levels."