MCX gold futures for June 4 delivery were last seen at Rs 47,079 per 10 grams, down Rs 240 or 0.51% from their previous close, after s’ be cooled to as low as Rs 47,025 earlier in the day.
The contract for August 5 delivery traded for Rs 222 or 0.47 percent to Rs 47,420.
The money followed suit with the July 5 contract on the stock market, with a rating of Rs 104 or 0.15 percent lower at Rs 70,796 per kilogram.
Globally, spot gold was down 0.63% to $ 1,781.63 an ounce and silver 0.70% to $ 26.70 an ounce.
Analysts said US Federal Reserve Chairman Jerome Powell said on Monday that the US economy is doing better but has not come out of the woods but made gold a little less attractive.
The US central bank wants to keep monetary policy loose for the foreseeable future, but the accelerating economic recovery has fueled speculation that support will decline sooner than expected.
Back home, a third day of losses on Dalal Street stopped the fall in precious metals. A sell-off in financial stocks, especially private lenders, caused benchmarks to drop nearly 1% each.
Typically, precious metals share an inverse relationship with stocks, with any gain in stocks increasing investor risk appetite, pushing them away from safe havens such as gold, and vice versa.
Meanwhile, 99.9% purity gold and spot silver stood at Rs 46,968 per 10 grams and Rs 70,120 per kilogram, excluding GST, when the deals were opened. Tuesday, according to Mumbai-based industry body IBJA.
Opening #Gold and #Silver #Rates for 05/04/2021 # IBJA https://t.co/2jiRJuHKKU
– IBJA (@ IBJA1919) 1620110106000
The dollar index – which values the greenback against six major overseas peers – was seen near its intraday high of 91.37 on last count, up 0.49% on the day.
What analysts say
“The dollar index is volatile in a range and stocks appear not to be in the mood to correct, which takes some of the shine off the metals. However, the metals have always been able to do well and may continue to do well. increase their earnings, ”said Navneet Damani, VP-Commodities Research, Motilal Oswal Financial Services.
He expects gold on COMEX to move into a wider range of $ 1,773 to $ 1,820 an ounce and on MCX to Rs 47,000-47,700 for 10 grams in the short term.
Many analysts believe the yellow metal is in a broader uptrend amid the uncertainty surrounding the pandemic.
Gold at Rs 50,000/10 g soon?
According to Damani, the depreciation of the rupee and a rally on COMEX could push MCX gold to Rs 50,500 by Diwali 2021.
“MCX gold finds support at Rs 47,100-46,880 and resistance at Rs 47,550-47,700, and silver at Rs 70,400-69,800 and Rs 71,400-71,900, respectively,” said Manoj Kumar Jain, chief executive officer of product research, Prithvi Finmart.
He suggests buying gold around Rs 47,100 for a target of Rs 47,600 with a stop loss at Rs 46,880 and silver around Rs 70,400 for a target of Rs 71,600 with a stop loss at Rs 69,800.
Market participants will be closely monitoring US service activity and employment data, expected this week in search of clues.