Gold Price Today: Yellow Metal at Rs 46,150; Rs 10,000 Down from Record High; Time to Buy?

Gold price in India surged on Monday, tracking positive global cues. On the Multi-Commodity Exchange (MCX), October gold price jumped 0.34 per cent to Rs 46,151 at 0930 hours on September 27. The price of yellow metal remained under pressure last week. However, the safe haven metal price gained on Monday, thanks to a subdued dollar and a retreat in US Treasury yields. Silver price also rose on Monday. On MCX, Silver December future increased 1 per cent to Rs 60,557 on September 27.

In the international market, gold prices firmed on Monday. Spot gold was up 0.5 per cent at $1,759.06 per ounce, as of 0400 GMT. US gold futures were surged 0.4 per cent at $1,759.00. The US dollar index eased while the benchmark 10-year Treasury yields softened, making bullion cheaper for other currencies.

The investors will now keenly follow the speeches from US Federal Reserve policymakers for cues on the central bank’s rate hike path. A close watch will also be on developments in debt-laden property giant China Evergrande saga. The firm missed a payment on offshore bonds last week, with further payment due this week. Cleveland Fed President Loretta Mester said last week the central bank should start reducing its support for the economy in November and could start raising interest rates by the end of next year should labour markets continue to improve.

In the global market, silver gained 0.9 per cent to $22.61 per ounce. “International gold prices have started marginally in the green this Monday morning in Asian trade. Technically, LBMA Gold above $1755 could see upside momentum where it holds a support zone near $1750-$1760 levels. Trade below $1750 will lead to more selling up to $1722-$1700 levels. Resistance is at $1770-$1790 levels. Domestic gold prices could start flat to marginally higher this Monday morning, tracking overseas prices. Technically, MCX Gold December above Rs 46,000 could see a upside momentum up to Rs 46,300-46,700 levels. Support is at Rs 45,800-45,700 levels,” said Sriram Iyer, senior research Analyst at Reliance Securities.

“International silver prices have started flat to marginally higher this Monday morning in Asian trade. Technically, LBMA Silver above $22.50 level could see sideways to marginal upside momentum up to $22.80-$23.30 levels. Support is at $22.30-$22.00 levels. Domestic silver prices could start flat to marginally higher this Monday morning, tracking overseas prices. Technically, MCX Silver December above Rs 60,000 level could see Rs 60,900-61,800 levels. Support is at Rs 59,300-58,700 levels,” Iyer added.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, increased 0.1 per cent to 993.52 tonnes on Friday compared against 992.65 tonnes in the prior session.

“The conclusion of the Federal Reserve’s FOMC meeting last week saw the US central bank make no monetary policy changes, but it did set the table for future tapering of its bond-buying program, and an increase in its key interest rate in 2022. Fed Chairman Judging by the positive reactions of stock and financial markets, the Fed meeting’s results, while not leaning dovish, were not too hawkish on US monetary policy. The key outside markets saw the US dollar index solidly lower. Nymex crude oil futures prices are higher and trading around $73.50 a barrel. Meantime, the yield on the benchmark US 10-year Treasury note is presently fetching around 1.4 per cent,” said Amit khare, AVP-Research Commodities, Ganganagar Commodity Limited.

“Gold and silver at higher levels but both metals are trading at oversold zone. Momentum indicator RSI also indicating the same and creating a strong positive divergence in four hourly as well as daily chart, So traders are advised to create fresh long positions in gold and silver, traders should focus important technical levels given below for the day: October gold closing price Rs 46,056, Support 1 – Rs 45,890, Support 2 – Rs 45,700, Resistance 1 – Rs 46,400, Resistance 2 – Rs 46,800. December Silver closing price Rs 60,789, Support 1 – Rs 60,300, Support 2 – Rs 59,800, Resistance 1 – Rs 61,200, Resistance 2 – Rs 61,790,” he added.