Indian gold market extends losses, due to weak global cues. In the past two trading days, the yellow metal dips by around Rs. 760 in the country, ahead of the festive season. Retail investors are finding an opportunity to buy gold at lower prices this season, demands are expected to surge.
Today, on September 27, the 22 carat gold rate falls to Rs. 45,800, and the 24 carat gold rate falls to Rs. 49,970/10 grams, falling by Rs. 200-230 respectively intra day. In Chennai, 22 carat gold rate is quoted at Rs. 46,100, and in Delhi the same was traded at Rs. 45,950. Meanwhile, the yellow metal recovers marginally in the international markets, while the US dollar remains steady in trade, after hitting a 20-year high yesterday. However, as the US currency is gaining strength as a better safe haven option, gold might be losing the same importance in the present market status.
Today, the Comex gold futures were quoted at $1,636.90/oz, up by 0.21%, till last traded. Yesterday it was last traded at $1,633.40/oz. Till today, the yellow metal fell by 11.11% this year in the futures market. The spot gold prices were last quoted at $1632.00/oz, up by 0.53%, from the last trading day. On the other hand, the US Dollar index gained to 114.29, up by 0.16%, till last traded. Today, in India, the Mumbai Commodity Exchange (MCX) gold in October future is quoted at Rs. 49318/10 grams, up by 0.34%, from the last trading day.
Commenting on the market trend, analyst Jim Wyckoff told Kitco News, "Technically, October gold futures prices hit a nearly 2.5-year low Monday. The gold futures bears have the solid overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at this week's high of $1,646.40 and then at $1,652.00. First support is seen at this week's low of $1,624.40 and then at $1,615."