The price of gold in India fell by Rs 450 from yesterday, while worldwide spot prices fell by 1.24% to $1756 in the international trade as the U.S. consumer confidence index came in better-than-expected in June, gold prices were trading at a two-month low. The indicator has now returned to pre-pandemic levels.
Today's dollar-to-rupee exchange rate rose to 74.2 from the previous close of 74.3. Today's gold rate may be influenced by the dollar's depreciation versus the rupee, reflecting a lower gold price in domestic markets.
In Bangalore, 22 karats gold was around that Rs 43,750 per 10 grams mark, while in Chennai spot gold for 22 karats was Rs 44,100 per 10 grams. In Mumbai spot gold for 22 karats was Rs 45,740 per 10 grams on Wednesday.
Gold August futures were trading flat on the Multi Commodity Exchange, at Rs 46,550, just below the critical Rs 47,000 threshold. Gold futures concluded the previous session at Rs 46,555 per 10 gram.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities says,
"The safe-haven metals are being pressured by bearish near-term technical charts and not much risk aversion in the marketplace at present. August gold futures were last down $17.80 at $1,763.00 and September Comex silver was last down $0.364 at $25.89 an ounce. The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures are firmer and trading around $73.30 a barrel after hitting a 2.5-year high of $74.45 Monday".
Adding further he said "Energy traders are awaiting Thursday's OPEC meeting. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.482%.Traders are awaiting Friday morning's employment situation report for June from the Labor Department-arguably the most important U.S. economic data point of the month. The key non-farm payrolls number is forecast to come in at up 700,000 compared to a rise of 559,000 in May. The unemployment rate is seen at 5.6% versus 5.8% in May."
The momentum indicator RSI giving strong positive divergence in 4 hour chart, So traders are advise to ignore fresh selling at lower levels and create long position in Gold - Silver, traders should also focus important technical levels given below for the day:
August Gold closing price 46,555, Support 1 - 46200, Support 2 - 46000, Resistance 1 - 46970, Resistance 2 - 47400.
July Silver closing price 67,232, Support 1 - 66400, Support 2 - 65600, Resistance 1 - 68100, Resistance 2 - 68850.
Sandeep Matta, Founder, TRADEIT Investment Advisor says, "The vagueness of the FOMC outcome in regards to inflation, dot plot, and raise rates weighs heavily on trader's and market participants' minds and technically becoming a sell on rise market. Strong dollar and rising bond yields are acting as inhibitor for gold prices and precious metal now needs some fundamental reason may be in form of employment data to move up."
Gold on MCX also cracked yesterday and somehow able to close above 46500 levels. Prices are unsettled by the Fed's taboo on inflation and market participants are advised to stay cautious either side, Matta added.
Key level for GOLD AUG Contract - 46617
Buy Zone Above - 46995 for the target of 46775-46830
Sell Zone Below - 46600 for the target of 46330-46100