Gold prices slip by Rs 2,100 to trade below Rs 1.19 lakh. What do charts say about rebound?

After a 4-hour delay in the commencement of trading on the MCX, gold and silver futures opened lower on Tuesday, extending their losses for the second straight session, tracking weakness in global markets and easing safe-haven demand.

At the Multi-Commodity Exchange (MCX), gold December futures were seen trading at Rs 1,18,864 per 10 grams, down Rs 2,093 or 1.73%. Silver December futures also slipped to Rs 1,41,550 per kilogram, a fall of Rs 1,817 or 1.27%.

Both metals settled on a weak note in the domestic and international markets on Monday. Gold December futures contract settled at Rs 1,20,957 per 10 grams with a loss of 2.02% and silver December futures contract settled at Rs 1,43,367 per kilogram with a loss of 2.78%.

Gold and silver extended their fall amid easing trade tensions between US-China. The U.S. and Chinese presidents are meeting later this week to finalise a trade deal and ease some safe-haven buying for precious metals.

“Gold and silver are also struggling amid huge long unwinding by traders and investors ahead of the Fed monetary policy meetings,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.

However, he believes that the U.S. shutdown, Fed rate cut hopes and weakness in the dollar index could support prices of gold and silver at lower levels.Today, the US Dollar Index, DXY, was hovering near the 98.69 mark, falling 0.09%.“Gold prices slipped below $4,000 mark during intraday trading in the Comex division, but holding these levels on a closing basis,” he added.

“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, ahead of the Fed monetary policy meeting and possible US-China President meets, and gold prices are expected to trade in the range of $3,940-4,280 per troy ounce. Silver is expected to trade in the range of $46.00-51.50 per troy ounce this week,” Jain stated.

How to trade gold?

Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:

• Gold has support at Rs 1,20,000-1,18,800 and resistance at Rs 1,21,740-1,22,650
• Silver has support at Rs 1,41,400-1,39,800 and resistance at Rs 1,45,000-1,46,650

Jain suggests avoiding fresh short positions in gold and silver at current levels as the market is in an oversold zone and some recovery is possible in today’s session.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 91,480/8 grams, while pure gold (24 carat) prices stand at Rs 98,368/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 90,432/8 grams, while pure gold (24 carat) prices stand at Rs 97,200/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 90,072/8 grams, while pure gold (24 carat) prices stand at Rs 96,840/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 90,344/8 grams, while pure gold (24 carat) prices stand at Rs 97,192/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)