After falling Rs 350 to Rs 59,650 per 10 grams in the national capital on Wednesday, gold again traded in the red today, i.e. on Thursday. They have fallen to this month’s lowest level.
Why Gold Price Is Falling
The fall in gold price comes after US retail inflation accelerated, though lower than what was anticipated raising odds for another rate hike. The jury is still out on whether the Fed Reserve will do it in its upcoming monetary policy meeting next week.
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The physical price of gold in top Indian cities like Delhi and Ahmedabad is around Rs 59,700 per 10 grams and Rs 72,500 for silver, as per an ET report.
Reacting to the fall in gold prices, Navneet Damani, Senior Vice-President of commodity research at Motilal Oswal Financial Services, said yesterday “Gold slipped to a more than two-week low amidst an uptick in yields and as investors are also positioning for the US inflation data scheduled, which could offer insights on whether the Fed Reserve will further hike interest rates this year“.
Today, the MCX October gold futures were trading down by Rs 45 or 0.08% from Wednesday’s closing price at Rs 58,548 per 10 gram on the MCX while the December Silver futures were trading at Rs 71,160 per kg, higher by Rs 259 or 0.61%.
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On Comex, Gold futures were trading at $1,934 per troy ounce on Thursday, down by $1.10 or 0.06% while Silver futures were at $23.215, higher by $0.187 or 0.800%. The October Gold futures had ended with declines of Rs 31 or 0.05% per 10 gram at Rs 58595 on Wednesday while the December Silver futures closed lower at Rs 71,410, down by Rs 524 per kg or 0.73%.
What Should Investors Do?
Amit Khare Associate Vice President at Ganganagar Commodity Limited (GCL) Broking sees bullions making a bottom on the daily charts and trading near the demand zone with momentum indicator RSI indicating the same. His advice to investors is to make fresh buy positions in gold and silver futures near the support level of Rs 58,500-58,300 while recommending profit booking near the resistance level of Rs 58,800-59,000.
However, it’s advisable to approach or consult a financial advisor and expert before making any decision. If you are looking to invest in gold, here are different ways to do so.
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Silver Rates Fall Too
Yesterday, as per PTI, silver also nosedived Rs 1,000 to Rs 73,400 per kg. As for silver futures, the declines are to the tune of 5.63% or Rs 4,263 in September while the gains this year stand at 2.89% or Rs 2,006.
