Sharp Fall In Indian Gold Rates: Good Time To Buy Gold

Indian gold rates, on April 20, have plunged by Rs. 700/10 grams. Today, 22 carat gold rates are quoted at Rs. 49150, and 24 carat gold rates quoted at Rs. 53620/10 grams. International gold prices have witnessed a sharp drop over the past 2 days. A firm US dollar index and a rising US Bond yield are responsible for this gain. Gold is a dollar-dominated asset class and with the rising US Dollar, gold rates fell globally. So, the metal becomes cheaper for other currency holders.

On the other hand, the US Federal Reserve is also behaving aggressively now, due to geopolitical uncertainties and the mounting inflation rate. According to Amit Khare, AVP - Research Commodities, Ganganagar Commodity Ltd., "As per the technical chart, gold, and silver are showing weakness. Momentum indicator RSI also cited the same in hourly as well as the daily chart. So traders are advised to create fresh sell positions near given resistance levels." Khare added, "June Gold Support price 1 is Rs. 52,300, Support 2 is Rs. 52,000, Resistance price 1 is Rs. 52,800, Resistance price 2 is Rs. 53,000."

The Comex gold futures were quoted at $1953.70/oz, falling by 0.27%, till last traded. Yesterday it was last quoted at $1959.00/oz. The spot gold prices are quoted at $1952.20/oz, falling by 0.06%, till last traded. On the other hand, the US dollar index in the spot market stood at 100.29, falling by 0.67%. In India, the MCX gold in June future was quoted at Rs. 52,495 grams, falling by 0.48%, till last traded.

However, Commenting on the global commodity market trend, Ravi Singh, Vice President and Head of Research, ShareIndia told the media, "Gold prices may see some profit-booking this week in hope of de-escalation of tensions between Russia and Ukraine. The rising US treasury yields and a stronger dollar is supporting the downside move in the gold."