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Gold futures fall marginally above Rs 46,000, silver falls

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Gold futures were last seen trading higher by Rs 143 or 0.31 per cent at Rs 46,180

Gold Price in India: Gold futures continued marginally lower on Friday, October 1, as the yellow metal mirrored global trends and traded above the Rs 46,000 level after yesterday’s rally. On the Multi Commodity Exchange (MCX), gold futures, due for delivery on October 5, were trading lower by Rs 143 or 0.31 per cent at Rs 46,180 as against Rs 46,323 in the previous trade. Silver futures for delivery on December 3 traded 0.39 per cent lower at Rs 59,387 from Rs 59,617 in the previous trade.

Foreign exchange rate:

On Friday, the rupee depreciated by 12 paise at 74.35 against the dollar in early trade, tracking a strong US currency in the overseas market and a softening trend in the domestic equity markets. According to experts, gold is a hedge against inflation and inches higher against the weaker greenback.

If the rupee depreciates against the US dollar, the gold price rises by the rupee. The US Federal Reserve meeting signaled a quicker-than-expected interest rate hike, pushing the dollar to a multi-month high.

What Analysts Say:

Mr Amit Pabri, MC, CR Forex:

The US dollar index continued its bullish momentum for the third day in a row and bid close to the 94.40 mark – its highest level in a year.

On the domestic front, Indian equities have been an outperformer for the current year amid stable economic data, inflation under control and a high vaccination campaign.

RBI’s intervention in the forex market is likely to be minimal as they will check spot/forward rates as well as volatility.

Ravindra Rao, CMT, EPAT, VP- Commodity Research Head at Kotak Securities:

“COMEX gold was trading with a slight decline near $1755/oz after a sharp gain of two percent yesterday. Gold remained under pressure on a strong US dollar, Fed’s monetary consolidation expectations and weak investor interest.

However, support price concerns global growth amid mixed economic data, rising inflation concerns amid higher inflationary pressures and rising concerns about the Chinese economy. The weakness in equities has also increased the appeal of gold as an alternative asset.

Gold has bounced back from its lows, but sustained growth is difficult as the US dollar remains on gains.

trading strategy

Sandeep Matta, Founder – TRADEIT Investment Advisor:

β€œThe precious metal has seen sharp short covings and bargainers have stepped in to buy counter post the US still far from full employment,” the chairman of the Federal Reserve noted.

Falling equity market and dollar depreciation may help gold prices to move higher from here, however the trend is still selling on the rise and long positions should be avoided.

Main level for Gold August contract – 46312; Zone Above – Buy 46325 with a target of 46700-47000; and sell area below – 46300 to target 46100-45900.

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