Gold prices fall yet again, off over Rs 11,600 from all-time highs; check MCX gold support resistance

Gold prices were trading weak in India on Friday tracking subdued overseas markets as firm US Treasury yields and a stronger US Dollar dented investor sentiment. On MCX, gold April futures were trading Rs 125 or 0.28 per cent down at Rs 44,570 per 10 grams as against the previous close of Rs 44,695. Silver May futures were ruling at Rs 64,821 per kg, down Rs 48 or 0.07 per cent, as compared to a previous close of Rs 64,869 on the Multi Commodity Exchange. Gold on MCX hit a record high of Rs 56,191 per 10 grams in August last year. Since then, the yellow metal has been witnessing volatility. MCX gold prices have plunged Rs 11,621 per 10 gram or 20.68 per cent.

Gold is range bound as support from virus concerns, loose monetary policy stance of major central banks, selling pressure in Chinese equity markets are countered by weaker investor interest and general strength in the US dollar, says Ravindra Rao, VP- Head Commodity Research at Kotak Securities. “Gold may witness choppy trade reflecting mixed trade in US dollar and bond yields however general bias may be on the upside as Fed’s dovish stance may lend some support,” he added.

The optimism over US economic growth is denting the safe-haven demand for gold and the uptrend in dollar index is keeping the gold price lower, says Rahul Gupta, Head of Research, Emkay Global Financial Services. Looking ahead, broad based risk appetite trends might keep the gold underpinned, with cautious upticks. “Because the MCX gold trend is negative, we can see some bounce but the intraday rise will be short-lived. Until prices trade below the crucial resistance of 46000, the trend will be negative with a crucial support zone of 43550-43000,” he told Financial Express Online.

Gold is trading sideways to negative for past many days as the gold markets have lost roughly 18% over the last few months, however, in last week it traded choppily and trying to be stabilized and gold prices moved lower but continue to trade in a tight range. “Prices were unable to cross resistance near the 45600 and back to the downside. Strong support is seen near the 44400 – 44200 zones, the price is looking weak however price will remain choppy. The price will only bullish above the 200 SMA which placed at 44800,” Kshitij Purohit, Lead Commodities & Currency at CapitalVia Global Research, told Financial Express Online

Globally, spot gold was flat at $1,726.96 per ounce, while the US gold futures were steady at $1,725.50 per ounce. The metal hit a one-week low of $1,721.46 in the previous session, according to Reuters.

(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)