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Gold Price Today: Yellow metal under pressure amid global growth crisis, weak economic data

Gold's sharp fall has dented market sentiment however a sustained decline is unlikely as economic data and rising raw material price reflect increasing challenges to the global economy.

September 24, 2021 / 10:22 AM IST

Gold prices edged higher on September 24 after falling more than 1% in the previous session, helped by a subdued dollar, although Federal Reserve’s plans on reducing stimulus to the US economy kept the bullion on track for a third straight week of declines.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading flat, marginally lower by 0.06 percent at Rs 46,030 for 10 grams at 0920 hours. September silver futures were lower by 0.145 percent at Rs 60,698 a kilogram.

Gold prices declined by Rs 294 to Rs 45,401 per 10 gram on September 23, amid fall in international precious metal prices and rupee appreciation. Silver prices gained marginally by Rs 26 to Rs 59,609 per kilogram from Rs 59,583 per kilogram.

Gold and silver plunged on Thursday after record gains in the global equities and benchmark 10-year bond yields in the United States. We expect both the precious metals could find support at lower levels once again in today’s session, said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.

"Gold has support at $1740-1728 per troy ounce and resistance at $1762-1774 per troy ounce while silver is having support at $22.40-22.20 per troy ounce and resistance at $22.88-23.20 per troy ounce. At MCX, gold has support at 45800-45550 and resistance at 46300-46580 while silver has support at 60300-59800 and resistance at 61100-61800 levels. We suggest buying gold around 45880 with a stop loss of 45650 for the target of 46300," he said.

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Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades little changed near $1749/oz after a sharp 1.6% decline yesterday. Weighing on gold price is firmness in equity markets, weaker investor interest and Fed’s projection of early rate hikes. However, supporting price are global growth worries amid disappointing economic data and concerns about the Chinese economy. Gold's sharp fall has dented market sentiment however a sustained decline is unlikely as economic data and rising raw material price reflect increasing challenges to the global economy.

Sandeep Matta, Founder at TRADEIT Investment Advisor

The precious metal witnessed deep cut in the prices amid increasing interest of market participants in global equity markets. Gold prices are unable sustain despite looming inflation threat in the economy and may be losing the safe heaven status for the near term. Gold on MCX is also trading negative and bears have the overall technical advantage. The outlook for precious metal is negative and markets participants will be better off in finding shorting opportunities.

Key level for gold – 46117
Buy zone above – 46125 for the target of 46275-46345

Sell zone below – 46110 for the target of 45900-45722

Amit khare, AVP- Research Commodities, Ganganagar Commodity

The conclusion of the Federal Reserve’s FOMC meeting Wednesday afternoon 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. Gold and silver showed a negative movement on September 23. But both metals are trading at oversold zone, momentum indicator RSI also indicating the same and creating a strong positive divergence in 4-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:

October Gold closing price 46056, Support 1 - 45890, Support 2 - 45700, Resistance 1 - 46400, Resistance 2 - 46800.

December Silver closing price 60789, Support 1 - 60300, Support 2 - 59800, Resistance 1 - 61200, Resistance 2 - 61790.

Ravi Singh, Founder and Director, DRS Advisory

Gold on MCX closed on a negative note post Fomc's meeting and statement, which indicated tapering of bond buying will start soon. Strong dollar and rising Bond Yields dented the sentiment of gold yesterday. The dollar index at its 4-week high and the US 10-Year bond yeild, which rose to 1.437 mark yesterday, the highest level in 10-week, exerted downward pressure. Easing Fed and China's Evergrande fear also impacted gold to fall further.

Buy zone above – 46250 for the target of 46700

Sell zone below – 45800 for the target of 45500

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sandip Das
first published: Sep 24, 2021 10:22 am

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