Gold Price Today, 20 July 2021: Gold off nearly Rs 8,100 from record high; support at Rs 47,500 per 10 gm
Gold prices were trading higher in India on Tuesday, even as yellow metal traded flat in the international market. Gold has been gaining for the past four straight weeks, and has surged over 3 per cent or Rs 1,451 per 10 grams so far in July. On Multi Commodity Exchange, gold August futures were trading Rs 185 or 0.4 per cent up at Rs 48,279 per 10 grams. In the previous session, it ended at Rs 48,094 per 10 grams. Silver September futures gained Rs 219 or 0.3 per cent at Rs 67,465 per kg, as against the last close of Rs 67,246 per kg. Gold prices are still Rs 8,097 down from its record high of 56,191 per 10 gram, touched last year in August.
Globally, gold prices were flat on Tuesday, as a slide in US Treasury yields offset a firmer dollar amid investor concerns over a relentless surge of the Delta coronavirus variant that could threaten the outlook for global economic recovery. Spot gold was steady at $1,813.15 per ounce, after falling to a one-week low of $1,794.06 in the previous session. US gold futures edged up 0.3 per cent at $1,813.80, according to Reuters.
Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities
Gold prices briefly went below $1800 before bouncing back and trading near $1816 on back of lower US Treasury yields which is trading near five-month low. Generally, lower yields are positive for gold but yesterday gold was under pressure as US dollar was trading near three and half month high. Rise in corona virus cases world-wide and emergence of third wave had spooked equity markets with US Dow posting its worst day in nine months falling as much as 2% overnight. Hedge funds continue to invest in gold but bullish sentiment could be shifting as the precious metal sees little new momentum despite a sustained drop in bond yields. Gold’s net long position is up 10.6% from last week. 47500 continues to be support for the market and 48500 is the resistance. We are bullish in gold despite resistance from strong US dollar although we don’t see any strong rally. Gold’s new base in COMEX is $1800 and long positions can be held until it is trading above $1800
MCX Gold prices erased its intraday losses after hitting a low of 47780 levels yesterday and the counter closed at 48094. Prices have opened with a positive bias today. A retest of resistance between 48400-48500 levels should be seen until support around 48050 holds intraday. Weakness below this level will see prices slip towards 47845/47780 levels again. A fresh upside breakout will be triggered only if prices trade above 48550 consistently. As dollar index is getting capitalised on safe haven flows, traders are moving away from gold. But gold is also a store of value and amid the rapid spread of coronavirus, traders will take shelter of safe-haven gold. So overall, as long as prices are trading above 47500, every dip is a buying opportunity for long term with target of 48750.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX gold trades 0.5% higher near $1819/oz after a 0.3% decline in the previous session. Gold trades higher supported by lower bond yields and safe haven buying amid increasing virus cases, US-China tensions and rising inflation concerns. However, weighing on price is firmness in the US dollar and weaker investor and consumer demand. Gold has managed to hold above $1800/oz level and may benefit from safe haven buying however any major upside will be challenged by a stronger US dollar.
Gold prices opened today at Rs 48260. Precious metals are losing upside momentum and correction in prices may continue today. Prices of Gold are looking weak at the current levels amid strength in Dollar which measures the basket of major currencies. In MCX, any rise in Gold prices towards 48400 may witness selling pressure while it has support at 47700 below this level it may test 47400 levels. Prices of Silver are looking weak and fresh selling pressure could be seen if prices rise towards immediate resistance levels. It has resistance at 68000 and support at 66600. Selling pressure in Silver may get momentum below 66600 levels.
