Gold prices in India dropped significantly on Thursday, tracking the global market. Gold prices tumbled in the international market after minutes from the last Federal Reserve meeting had showed that US central bank may need to raise interest rates sooner than expected. On the Multi-Commodity Exchange (MCX), the gold contracts slipped 0.51 per cent to Rs 47,775 for 10 grams at 0928 hours on January 6. Silver also witnessed a sharp drop on Thursday. The precious metal future slumped 1.41 per cent to Rs 61,360 for a kilogram on January 6.
Spot gold was down at $1,810.59 per ounce by 0142 GMT. US gold futures fell 0.8 per cent to $1,810.00. In the minutes from the Fed’s December 14-15 policy meeting, US central bank policymakers said a “very tight” job market and unabated inflation might require the Fed to raise rates sooner than expected and begin reducing its overall asset holdings.
Benchmark US 10-year Treasury yields rose to its strongest level since April 2021. The dollar cut losses after Fed minutes, making yellow metal less appealing for other currency holders.
“The gold prices are trading in a tight range after the release of the December Federal Reserve meeting minutes signaled a possibility of earlier and faster rate hikes due to increasing inflation. The Omicron concern is also rising day by day, making economic recovery vulnerable. Buy Zone Above – Rs 48,200 for the target of Rs 48,500. Sell Zone Below – Rs 47,800 for the target of Rs 47,600,” said Dr Ravi Singh, vice president and head of research ShareIndia.
“As per daily technical chart gold and silver both are showing weakness, Momentum indicator RSI also indicating the same in hourly as well as daily chart. So traders are advised to create fresh sell positions near given resistance levels, traders should focus important technical levels given below for the day: February Gold closing price Rs 48,021, Support 1 – Rs 47,800, Support 2 – Rs 47,600, Resistance 1 – Rs 48,100, Resistance 2 – Rs 48,300. March Silver closing price Rs 62,238, Support 1 – Rs 61,800, Support 2 – Rs 61,000, Resistance 1 – Rs 62,400, Resistance 2 – Rs 62,800,” said Amit Khare, AVP- research commodities, Ganganagar Commodity Limited
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