Gold Price Today Flat Near Rs 48,400, Investors Should Book Profit, Say Experts

Gold price in India traded flat on Friday. On the Multi-Commodity Exchange (MCX), August gold contracts fell 0.06 per cent to Rs 48,368 for 10 grams at 0930 hours. Silver also slumped on Friday after witnessing huge gains during the previous session. The precious metal tanked 0.26 per cent to Rs 68,024 on Friday.

In the international market, gold prices edged higher on Friday. The yellow metal was on track for the biggest weekly gain in more than two months. Spot gold was steady at $1,827.28 per ounce by 0256 GMT, having hit its highest since July 15 at $1,832.40 on Thursday. US gold futures eased 0.2% to $1,832.00 per ounce, according to Reuters. The metal prices surged after Fed Chief Jerome Powell’s remarks that the US job market still had “some ground to cover” and that it was “ways away” from considering interest rate hikes.

“The US Dollar continued to move lower on Thursday weighed down by the dovish Fed Chairman’s comments and lent support. Reinforcing Powell’s views, data showed the U.S. economy grew at a 6.5% annualized rate last quarter, below a forecast for an 8.5% rise by economists in a poll. Additionally, initial jobless claims declined by 24,000 to 400,000 vs. a forecast of 380,000 new claims in the week ended July 24, the government said. The data was slightly weak but suggested that the Delta variant of the virus has not caused severe damage to the labour market,” said Sriram Iyer, senior research analyst at Reliance Securities.

“International spot gold and silver prices have started higher this Friday morning in Asian trade. Markets will look to cues from data tonight. Technically, LBMA Gold resistances are at $1848 and $1860 levels. Supports are at $1816 and $1805. LBMA Silver could trade within the range of $24.80-$26.10 levels. Domestic gold and silver prices could start higher this Friday morning, tracking overseas prices. On the domestic front, MCX Gold October supports are at Rs 48,100 and Rs 47,900. Resistances are at Rs 48,450 and Rs 48,600. MCX Silver September resistances are at Rs 68,700 and Rs 69,500. Supports are at Rs 67,700 and Rs 67,000,” said Iyer.

India’s gold demand rose by 19.2 per cent to 76.1 tonne during the April-June quarter this year, largely due to low base effect, the data from World Gold Council (WGC) mentioned. In value terms, the gold demand witnessed 23 per cent growth year-on-year to Rs 32,810 crore during April-June quarter. However, demand plunged 46 per cent quarter-on quarter owing to second wave of Covid-19. The overall gold demand during the second quarter of 2020 calendar year stood at 63.8 tonnes, according to the report.

“The World Gold Council said global demand for gold has yet to recover from the pandemic. The WGC said gold demand during the first half of 2021 was the lowest since 2008. The April-to-June period saw global gold demand at 955.1 metric tons (MT), a reduction from 960.5 MT over the same period in 2020. The second quarter of 2019 saw a demand of 1,132.1 MT. However, central banks bought more gold between April and June 2021 than any quarter for two years. ETFs also added considerable amounts of gold to their stockpiles in the second quarter of this year, said the WGC. The yield on the US Treasury 10-year note is presently fetching 1.27%,” said Amit Khare, AVP — research commodities, Ganganagar Commodities Limited.

“Technically, gold futures bulls have regained the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the July high of $1,835.00 and then at $1,850.00. First support is seen at $1,815.00 and then at $1,800.00,” he added.

“Today we can see some profit booking in bullions, momentum indicator RSI also indicating the same on hourly chart. So traders are advise to book profit in gold silver and can create fresh short position near given resistance, traders should also focus important technical levels given below for the day: August gold closing price Rs 48,281, Support 1 – Rs 47,900, Support 2 – Rs 47,600, Resistance 1 – Rs 48,500, Resistance 2 – Rs 48,700. September silver closing price Rs 68,200, Support 1 – Rs 67,200, Support 2 – 66200, Resistance 1 – Rs 68,700, Resistance 2 – Rs 69,200,” he added.