Gold price in India witnessed a huge drop on Monday. The yellow metal opened in red on September 6. On the Multi-Commodity Exchange (MCX), October gold contracts tanked 0.16 per cent to Rs 47,449 for 10 grams at 0910 hours. However, silver remained flat on Monday. The precious metal future was trading at Rs 65,241, 0.05 per cent up on September 6.
In the international market, gold price on Monday hovered around a two-and-half-month peak. Spot gold was steady at $1,826.65 per ounce, as of 0048 GMT. US gold futures GCv1 eased 0.3 per cent to $1,828.60, Reuters reported. US nonfarm payrolls increased by 235,000 jobs last month, according to the date published by the US Labour Department. US dollar index was at its lowest level since August 4. Gold is considered a hedge against inflation and currency debasement, caused by massive amounts of stimulus measures.
International gold prices have started flat this Monday morning in Asian trade, but disappointing US jobs data signaled that the Federal Reserve could push back the timeline for tapering stimulus measures and kept downside capped in bullion. Technically, LBMA Gold breakout above $1823 level could see upside movement up to $1835-$1858 levels. However below $1817 could see a downside pressure up to $1810-$1800 levels. LBMA Silver above $24.00 level could see $25.10-$25.44 levels. Support is at $23.20-$22.70 levels, said Sriram Iyer, senior research analyst at Reliance Securities.
Domestic gold prices could start flat this Monday morning, tracking overseas prices. MCX Gold October hold a strong support near Rs 47,350-47,200 levels. Resistance is at Rs 47,550-47,700 levels. MCX Silver December above Rs 65,000 level could see Rs 65,600-66,100 levels. Support is at Rs 64,500-63,700 levels. MCXBULLDEX September could trade on Bullish note within the range of Rs 14,200-14,450 levels, Iyer added.
Gold prices surged significantly higher on significantly low job data and on the verge of breaking out the key resistance range of $1835-$1845/oz. The tepid job data count clearly indicates that the economic growth on consumer demand has taken few steps backward and impact of delta variant on global economies, said Sandeep Matta, founder, TRADEIT Investment Advisor
Gold on MCX has also closed positive while closing above 47500 is encouraging. Bulls have technical medium-term advantage over bears on account of subdued economic growth, currency weakening, and dovish fed commentary. The overall outlook and setup are positive for today and market participants are advised to follow below key pivotal levels. Key level for gold August contract Rs 47,386 Buy zone above Rs 47,375 for the target of Rs 47,737-47,950. Sell Zone Below Rs 47,375 for the target of Rs 47,200-47,040, said Matta.