According to the latest news, gold prices declined in India today ahead of the United States Presidential elections result and volatile currency market. Furthermore, market participants keep close tabs on the FOMC (Federal Open Market Committee), which started its two-day meeting on October 4.
On Multi Commodity Exchange, gold December futures declined by 0.5%, which equals Rs 250, and settled at Rs 51,349 per 10 gram. Meanwhile, the silver December futures dropped 1.60% (or Rs 1,000) and was trading at Rs 61,684 per kg.
Remarkably, gold and silver futures ended in the positive territory with more than 1% in the previous session. According to Bhavik Patel, Senior Technical Research Analyst at Tradebulls securities, the uncertainty that President Donald Trump may win a second term is covering the way for the safe-haven U.S. dollar to increase, which is generally dangerous for gold prices.
Furthermore, at the beginning of August, the yellow metal reached a record high of Rs 56,191 per 10 gram, while the white metal climbed to an all-time high of Rs 77,949 per kg. According to Patel, gold prices will go up after election noise will be over. In the short term, Patel foresees high volatility in gold and trading in the range of $1,920-$1,870. On Mult Commodity Exchange, the range is likely to be between Rs 50,500-51,800 per 10 gram.
Patel supports to buy on dips nearby Rs 51,200.
On MCX, Rs 50,000 is demonstrating to be a strong base, and any long positions could be maintained with Rs 50,000 stop loss.
Patel announced that Rs 52,000 resumes being strong resistance on the upside, and we may see gold prices flourishing if it succeeds in breaking over $1930 in COMEX.
Additionally, intraday support for the yellow metal in MCX is 51,050, while resistance is likely to be Rs 51,500. Patel supports to buy on dips nearby Rs 51,200.
Globally, spot gold decreased by 0.4% and settled at $1,901.72 per ounce. U.S. gold futures dropped 0.4% and touched $1,902.20. Amid other factors, gold is backed by expectations of additional stimulus measures and increasing virus cases.
However, ETF flows show weaker investor interest. According to Ravindra Rao, VP-Head Commodity Research at Kodak Securities, the yellow metal may see choppy trade as the market reacts to the outcome of the U.S. election; however, optimism of further stimulus measures may keep price supported.
Furthermore, silver eased 0.2% to settled at $24.11 per ounce, while Platinum decreased 0.5% and touched $861.90 and palladium dropped 1.1% to $2,256.88. Head of Commodity Research, Hareesh V, optimism over more fiscal stimulus measures, intensifying U.S.-China trade tensions, and increasing new pandemic infections continue to offer lower-level support to gold.
