Gold prices fell below Rs 48,000 per 10 gram in the Indian market tracking feeble global cues despite weakness in the US dollar. The Indian commodity market opened in the evening session as it was shut in the morning session on the eve of Guru Nanak Jayanti.
The domestic market retail market was closed today. The price had settled at Rs 48,807 per 10 gram on Friday.
The precious metal has been on a downward path on improved risk sentiment for riskier assets on the back of progress on vaccine front, positive economic data and easing uncertainty related to the US Presidential election.
The yellow metal has lost Rs 2,998 or 5.91 percent in November, the worst month in 2020 and down 14.58 percent from the highs of August.
The US dollar trades lower at 91.58 or down 0.23 percent in the evening session against a basket of currencies.
Spot gold fell by $18.08 at $1,769.58 an ounce at 1231 GMT in London trading.
MCX iCOMDEX Bullion Index was down 163.79 points, or 1.11 percent, at 14,576.73 at 18:06. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Comex Gold Price has continued to trade below the psychological support levels at 1800-mark, RSI and MACD indicator is at lowest levels in March, after breaking 100 SMA which placed at Rs 51,077 Domestic Gold Market started downside. It also breaks 200 Day moving average on the daily chart and trading below Rs 48,176 levels; however, the longer-term outlook remains tilted higher as Gold is making bullish Cup and Handle pattern on a weekly chart and continuing to trade firmly above 50-Week Moving Average which placed at Rs 46,700 levels.”
Nevertheless, if it breaks its Rs 48,176-level market may reach 50 percent Fibonacci (47286), which looks likely in the near-term support. Technically on a daily chart, RSI is also indicating (30) i.e market is in oversold zone and it may trade sideways to positive momentum near the short term support zone.
The spot gold/silver ratio currently stands at 79.85 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices declined Rs 1,039 to Rs 59,220 per kg from its closing on November 27.
In the futures market, the gold rate touched an intraday high of Rs 48,114 and an intraday low of Rs 47,610 on the Multi-Commodity Exchange (MCX). For the February series, the yellow metal touched a low of Rs 41,560 and a high of Rs 57,100.
Gold futures for February delivery slipped Rs 454, or 0.94 percent, at Rs 47,645 per 10 gram in evening trade on a business turnover of 13,550 lots. The same for December edged lower Rs 481, or 1 percent, at Rs 47,644 on a business turnover of 396 lots.
The value of the December and February’s contracts traded so far is Rs 59.13 crore and Rs 574.10 crore, respectively.
Similarly, Gold Mini contract for January eased Rs 455, or 0.94 percent at Rs 47,775 on a business turnover of 13,890 lots.
For all commodities-related news, click hereDisclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.