Gold price in India edged up on Monday, October 18 following the international peers. On the Multi-Commodity Exchange (MCX), December gold price rose 0.11 per cent to Rs 47,265 for 10 grams at 0905 hours on October 18. Silver price also increased on Monday. The precious metal jumped 0.16 per cent to Rs 63,371 on October 18.
In the international market, gold price rose on Monday as US bond yields and the dollar softened. Spot gold climbed 0.2 per cent to $1,770.26 per ounce by 202 GMT while US gold futures were up 0.1 per cent at $1,770.50. Benchmark US 10-year Treasury yields eased after rising to a high of 1.5904 per cent on Monday. The dollar index dropped 0.6 per cent from last week’s 2021 highs.
Gold imports zoomed to about $24 billion during April-September 2021 due to higher demand in the country, according to data from the commerce ministry. Imports of the yellow metal were $6.8 billion in the corresponding period last year, the data showed. On the other hand, silver imports dipped by 15.5 per cent to $619.3 million during April-September this fiscal. Gold imports during September this year too rose to $5.11 billion as against $601.4 million in the same month last year.
Retail sales rose 0.7 per cent last month. Data for August was revised higher to show retail sales increasing 0.9 per cent instead of 0.7 per cent. However, physical gold flipped back to premiums in India this week as key festivals ushered in jewellery buying and capped further downside.
“International gold prices have started flat to marginally stronger this Monday morning in Asian trade. However, upside remained capped as the dollar and the 10-year benchmark remained were marginally strong this Monday morning in Asian trade. Technically, LBMA gold resistances are near $1790 and $1810. Supports are at $1760 and $1750. Domestic gold prices could start flat to marginally weaker this Thursday morning, tracking a weak start in the overseas prices. Technically, MCX Gold December resistances are Rs 47,550 and Rs 47,750. Supports are at Rs 47,000 and 46,850,” said Sriram Iyer, senior research analyst at Reliance Securities
“International silver prices have started flat to marginally stronger this Monday morning in Asian trade. Technically, LBMA Silver range for the day is $24.70-$22.45. Domestic silver prices could start flat to marginally stronger this Monday morning, tracking overseas prices. Technically, MCX Silver December range for the day is Rs 61,200- 64,300,” Iyer added.
“Now both gold and silver are again trading at demand zone. Overall technical charts of gold silver are strong. Momentum indicator RSI also indicating the same. So traders are advised to make fresh long positions in gold and silver near given support levels. The traders should focus important technical levels given below for the day: December gold closing price Rs 47,213, Support 1 – Rs 47,050, Support 2 – Rs 46,850, Resistance 1 – Rs 47,520, Resistance 2 – Rs 47,700. December silver closing price Rs 63,271, Support 1 – Rs 62,800, Support 2 – Rs 62,200, Resistance 1 – Rs 63,710, Resistance 2 – Rs 64,335,” said Amit khare, AVP- Research Commodities, Ganganagar Commodity Limited.
“According to data from commerce ministry, gold imports increased to about $24 billion during April-September 2021 from $6.8 billion year-on-year due to higher demand in the country during festive and marriage season. The correction in gold is due to profit booking and the recently published FOMC meeting minutes of 21-22 September meeting which indicated that the central bank could begin tapering its $120 bn monthly bond purchase program starting from mid-Nov or mid-Dec. Buy Zone Above – Rs 47,250 for the target of Rs 47500. Buy Sell Below – Rs 47,000 for the target of Rs 46,750,” Ravi Singh, vice president and head of research ShareIndia.