Gold Rate Today, Gold Price in India on 17 June 2021: Gold prices in Indian on Thursday plunged to a one-month low, following an overnight crash in international markets.
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in Indian on Thursday plunged to a one-month low, following an overnight crash in international markets. Gold August futures gave up Rs 48,000 per 10 grams, tumbling Rs 782 or 1.61 per cent to Rs 47,724. In the previous session, it closed at Rs 48,506. Silver July futures tanked below Rs 71,000 per kg, and were ruling Rs 1,1175 or 1.64 per cent down at Rs 70,293 per kg. Globally, yellow metal prices were hovering near a more than one-month low as the dollar and U.S. Treasury yields jumped after Federal Reserve officials projected interest rate hikes sooner than expected. Following a drop of 2.5 per cent in the previous session to its lowest since May 6 at $1,803.79 per ounce, spot gold was slightly up 0.2 per cent. U.S. gold futures were down 2.4% at $1,816.90 per ounce. The dollar index jumped to its highest level in two months against its rivals, according to Reuters.
Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities
Gold prices saw steep sell off and lost more than $40 after Federal Reserve Chair Jerome Powell spoke about inflation, the Fed’s dot plot, and clarified plans on tapering. Gold prices reacted to a rise in the U.S. 10-year Treasury yield, which climbed to 1.58%. Market reacted to the news that higher inflation is expected to remain for this year and a possibility of two rate hikes as soon as 2023. In March 2021, there was no projection for interest rate hike in 2023 and now there is possibility of 2 interest rate hike in 2023. We believe gold will try to find some footing around current level as yesterday $1800 level was not breached and try to consolidate around $1830-$1850. Any long positions can be exited below $1800. In MCX, 47000 is key support area and fall below that would change gold’s sentiment from positive to negative. So staggered buying can be initiated with stoploss of 47000 in MCX.
The hawkish Fed has slumped the gold prices. MCX Gold prices have opened with a cut of around 1.50% today. Gold is usually seen as a hedge against inflation, but hints of an increase in Fed rates has dull the bullion’s appeal. The outlook for the counter will stay negative until prices trade below 48110 levels intraday. Bounce will face resistance until then and the losses will extend towards 47500/47000 areas. Prices need to register a close above 48250 for a strong reversal during the coming sessions. Only a consistent trading above 48200 will open doors for 48550-48600.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades about 2% lower near $1823/oz and has tested the lowest level since early May. Gold is pressurized by sharp rise in US dollar index and bond yields in reaction to Fed’s projection of early interest rate hikes. Gold ETF investors remained on sidelines however supporting price is rising inflation concerns and uneven global economic recovery. Fed’s stance is negative for gold however market reaction may subside as the central bank is not looking at any imminent measures.
Technically MCX Gold Aug prices are looking weak for intraday. Currently, Price trading below 50 days moving average (48,010) which suggests that the short-term trend is changed to the downside. On the other hand, The RSI indicator on the daily chart is suggesting strength in the momentum on the downside. Going forward, we expect it going to strong support at 47,700 levels and breaking below which price can drag down towards 47,300 to 47,200 in the coming sessions. On the upside, we expect the opening gap will act as strong resistance which comes around 48,200 levels for the intraday. For intraday, MCX July SILVER price is looking weak. On an hourly chart, MCX July Silver has broken the Neck support levels of the double head and shoulder pattern. According to the pattern, the Price will drag down towards the target level of 67,500 to 67,300 levels in the coming trading sessions. On the upside, it will face strong resistance at the neckline which comes around 70,900 levels approximately.
