For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Spot Gold Prices In India Set to Plunge As Global Prices Dip

|

Spot gold rates in India, are set to fall today by at least Rs 600 to Rs 800 grams, after international prices of gold plunged by nearly 2%. One of the reasons for the fall was that the Federal Reserve signalled that it may act sooner than previously planned to start cutting back the low-interest rate policies that have helped fuel a swift rebound from the pandemic recession but have also coincided with rising inflation.

 

The Fed's policymakers forecast that they would raise their benchmark short-term rate, which influences many consumer and business loans, twice by late 2023.

Gold rates in India set to dip

Spot gold prices in India which were at around Rs 47,540 per 10 grams for 22 karats in Chennai and Rs 47,400 per 10 grams in Mumbai could fall by at least Rs 600 to Rs 800 grams per 10 grams. In Bangalore gold prices were at Rs 45,340 per 10 grams, while it was Rs 47,490 in Delhi.

India imports almost all of its gold requirements and any drop in international prices leads to a fall in the domestic prices in India as well. There is another determinant for gold rates, which is currency, but that is pretty steady these days.

 

Spot Gold Prices In India Set to Plunge As Global Prices Dip

According to Amit Khare, Assistant Vice President at Ganganagar Commodities traders are advised to create short positions near resistance levels and traders should also focus important technical levels given below for the day. According to him August Gold closing price Rs 48,424, has the first support at Rs 48200, while the second support is at Rs 48000, and the first resistance is at Rs 48750 and second resistance is at Rs 48950.

"Bulls' next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,810.70. First resistance is seen at today's high of $1,870.90 and then at this week's high of $1,879.70. First support is seen at this week's low of $1,845.70 and then at $1,840.00," Khare says.

Many analysts suggest that gold could be a buy on dips due to the knee jerk reaction.

International gold prices to remain volatile

International prices of gold would continue to move in either way, depending also how sovereign bond yields in the US move. Bond yields in the US dropped after the US Fed hinted at an earlier than expected interest rate hike, which pushed gold prices lower. Sovereign bond yields and gold prices tend to move in the opposite directions.

Spot gold in the international markets was last seen trading at $1825 an ounce almost 2% from the previous day's close. Analysts are bracing for more volatility during the last two trading days of the week.

Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X