Gold Price Today Below Rs 46,400, Around Rs 10,000 Down from All-Time High. Buy or Sell?



Gold price in India remained below Rs 46,000-mark on Thursday. On the Multi-Commodity Exchange (MCX), October gold contracts was trading flat at Rs 46,375 for 10 grams at 1030 hours on August 12. The yellow metal witnessed the biggest dip in the last five months at the start of this week. Since then, the gold price has been hovering around Rs Rs 46,000-46,500 zone. However, Silver saw significant drop on Thursday. The precious metal slumped 0.27 per cent to Rs 62,600 on August 12.

In the international market, gold prices remained stable on Thursday. Spot gold inched 0.1% lower to $1,749.62 per ounce by 0329 GMT, having recorded it biggest one-day percentage gain since May 6 on Wednesday. US gold futures were down 0.1% at $1,751.00, according to Reuters. The dollar index and the bond yields eased and lent support.

“International spot and futures gold prices rebounded on Wednesday after weak US consumer price data eased fears that the Federal Reserve would taper its economic support sooner than expected. Domestic gold and silver ended higher on Wednesday, tracking overseas prices. The most active Call strikes for September MCX expiry option gold contract are Rs 48,000 and Rs 47,000. The most active Put strikes for September MCX expiry option gold contract are Rs 45,000 and Rs 47,000,” said Sriram Iyer, senior research analyst at Reliance Securities.

“International spot and futures gold & silver prices have started flat this Thursday morning in Asian trade. Technically, LBMA Gold could trade on positive note above $1740 levels could see $1755-$1767 levels. Support is at $1737-$1729 levels. Technically, LBMA Silver below $24.00 levels will continue its sideways momentum up to $23.20-$22.70 levels. Resistance is at $23.60-$24.10 levels,” Iyer added.

“Domestic gold and silver prices and Bullion Index futures could start flat this Thursday morning, tracking overseas prices. On the domestic front, MCX Gold October above Rs 46,000 will continue its bullish momentum up to Rs 46,580-46,700 levels. Support is at Rs 46,250-46,050 levels. MCXBULLDEX May could trade on a bullish note within the range of Rs 13,800-14,050 levels.

On the domestic front, MCX Silver September above Rs 63,000 below which could see Rs 63,700-64,300 levels. Support is at Rs 62,600-61,900 levels,” he further mentioned.

“The precious metals bulls have stabilised their markets at mid-week, following recent selling pressure. October gold futures were last up $19.80 at $1,749.50 and September Comex silver was last up $0.068 at $23.46 an ounce. Today’s US consumer price index (CPI) report for July came in at up 0.5 per cent That was right in line with the consensus forecast and compares to a rise of 0.9 per cent in June. Year-on-year, the CPI was up 5.4 per cent, also right in line with market expectations. The markets showed little reaction to the reports. Technically, gold bulls are stabilizing the market after prices hit a more-then-four-month low on Monday. The gold bears still have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,676.40,” said Amit khare, AVP — research commodities, Ganganagar Commodities.

“Gold and silver both are trading at oversold zone. Momentum indicator RSI also giving positive divergence in four hourly as well as hourly chart, So traders are advised to create buy positions in gold and silver near given support levels, traders should also focus important technical levels given below for the day: August Gold closing price Rs 46,388, Support 1 – Rs 46,100, Support 2 – Rs 45,800, Resistance 1 – Rs 46,700, Resistance 2 – Rs 46,955. September silver closing price Rs 62,771, Support 1 – Rs 62,400, Support 2 – Rs 62,000, Resistance 1 – Rs 63,100, Resistance 2 – Rs 63,500,” he added.

“Gold prices jumped $1750/0z giving some relief to market participants and if sustain will begin its way to a substantial recovery. The gold bulls are stabilizing prices after four months low however bears have some near-term technical advantage as global equity markets and crypto currency are becoming showstopper for gold to become a preferred asset class,” said Sandeep Matta, founder, TRADEIT Investment Advisor

“Gold on MCX also recovered and sustained over Rs 46,000 level with positive price volume action and we anticipate a recovery in precious metal as all the momentum indicators are showing bottom formation around Rs 45500. We advise long term investors to start buying in gold in staggering manner while short term traders should follow key pivotal levels with positive biases. Key level for gold August contract – Rs 46,253. Buy Zone Above – Rs 46,253 for the target of Rs 46,581-46,774. Sell Zone Below – Rs 46,250 for the target of Rs 46,060-45,732,” added Matta.

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