Gold prices on Multi Commodity Exchange of India (MCX) opened lower on Monday, following losses in the international bullion prices, on stronger dollar and hopes of a US-China trade deal.
MCX gold rate opened 0.77% lower at ₹1,22,500 per 10 grams as compared to its previous close of ₹1,23,451 level. MCX silver prices opened 3.09% lower at ₹1,42,910 per kg against its previous close of 1,47,470 level.
At 9:05 AM, MCX gold price was trading lower by ₹1,088, or 0.88%, at ₹1,22,363 per kg, while MCX silver price was down by ₹1,130, or 0.77%, at ₹1,46,340 per kg.
In the global markets, gold prices fell as signs of easing US-China trade tensions weighed on the safe-haven metal, while investors awaited major central bank meetings due later this week for monetary policy cues.
Spot gold price declined 0.7% to $4,082.77 per ounce, while US gold futures for December delivery fell 1% to $4,095.80.
The US dollar rose to a more than two-week high against the yen, making gold more expensive for other currency holders.
On Sunday, top economic officials from US and China hashed out the framework of a trade deal on Sunday for US President Donald Trump and Chinese President Xi Jinping to decide on later this week.
“Gold prices fell as progress in US–China trade talks dampened demand for safe-haven assets. Markets are also focused on major central bank decisions this week, with the Federal Reserve widely expected to cut rates by 25 bps following softer-than-expected US CPI data, while the European Central Bank and the Bank of Japan are seen likely to hold their policy rates steady,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Gold Price Outlook
According to Trivedi, MCX gold price for December expiry may fall to ₹122,600 per 10 grams.
Rahul Kalantri, VP Commodities, Mehta Equities said that the gold prices have support at $4,050 – $4,005, while resistance at $4,145 – $4,165. Silver price has support at $47.80 – $47.20 and resistance at $48.65 – $48.95.
“MCX gold price has support at ₹1,22,470 – ₹1,21,780, while resistance at ₹1,23,950 – ₹1,24,800. Silver price has support at ₹1,46,250 – ₹1,45,150, while resistance is seen at ₹1,47,950 – ₹1,48,780,” said Kalantri.
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