Gold prices fall on Thursday after hitting their highest for a month in the previous session; MCX money crumbles

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In the previous session, gold prices jumped due to the weakness of the Indian rupee against the US dollar

Gold prices traded lower in Indian markets on Thursday after hitting a one-month high of 46,400 rupees in the previous session. On MCX, June gold futures were trading Rs 110 or 0.24 percent at Rs 46,252 per 10 grams from the previous close of Rs 46,362. Silver May futures were at 66,400 rupees per kg, down 234 rupees or 0.35 percent, from a previous close of 66,634 rupees on the multiple commodity exchange. MCX gold hit a record high of Rs 56,191 for 10 grams last year in August. Since then, the yellow metal has experienced volatility.

From an all time high, gold prices fell by 9,939 rupees per 10 grams or 17.68 percent. Gold, meanwhile, rebounded from lows around $ 1,686, but failed to maintain the upward momentum, said Bhavik Patel, senior technical research analyst at Tradebulls Securities. Gold resumed its position above $ 1,700 as the Fed remained indifferent to inflation or rising bond yields. Although US bond yields have risen, the latest US Fed meeting showed that the US central bank is in no rush to change its current ultra-accommodative, positive monetary policy for gold. “In the medium term, gold is currently in a period of uncertainty as bulls and bears fight for control. In MCX, gold made a double dip around Rs 44,150 and managed to break through the narrow trading range of Rs 44,300 to 45,300 where it was stuck for most of March, ”said Patel at The Bharat Express News Online.

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Bhavik Patel also said the breakout of the range dictates that the short-term trend is bullish and investors should maintain their buy strategy on the dips. “Any downside close to Rs 45,700 would be an ideal level for long positions with an expected target of Rs 46,500 and a stop loss of Rs 45,400,” he added.

Globally, gold prices stabilized after early declines on Thursday, as market participants weighed the U.S. Federal Reserve’s commitment to keep interest rates low for some time against probably higher inflation. Spot gold was flat at $ 1,737.89 an ounce, while US gold futures fell 0.1% to $ 1,739.20 an ounce, according to Reuters.

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Yesterday gold prices jumped due to the weakness of the Indian rupee against the US dollar. The Reserve Bank of India (RBI) also announced that its policy rate will remain unchanged and maintain its accommodative stance until the prospects for a sustained recovery are well secured. “MCX Gold June broke above the 46000 level indicating a positive trend to hold at the 46400-46700 levels. The support is at levels 45950 to 45800, ”Kshitij Purohit, senior commodities and currencies at CapitalVia Global Research, told The Bharat Express News Online. In addition, the minutes of the FOMC meeting last night have arrived and members of the Federal Reserve have unanimously recommended keeping the federal funds rate close to zero. “The first short-term range is 47200-44600 and 46600-46700 is the first target on the upside and potential resistance,” Purohit added.

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