Gold price in India was trading flat on Tuesday. On the Multi-Commodity Exchange (MCX), August gold contracts dropped 0.07 per cent lower to Rs 47,430 for 10 grams at 1030 hours. The price yellow metal tanked for the second straight day this week. Silver also witnessed a slump on Tuesday. The precious metal plummeted 0.15 per cent to Rs 67,020 on July 27.
In the international market, the yellow metal edged lower on Tuesday. Spot gold was flat at $1,797.71 per ounce by 0324 GMT. US gold futures fell 0.1% to $1,797.70 per ounce. The dollar index held steady just below recent peaks. The investors are eagerly waiting for Federal Reserve meeting this week. The US central bank’s meeting may provide clues on the direction of the US dollar and its ramifications to the gold prices, the experts believed. The two-day meeting will start on Tuesday and a policy statement will be issued at 1800 GMT on Wednesday, followed by a news conference by Fed Chairman Jerome Powell.
“Bullion prices remained subdued despite a weaker dollar and subdued bond yields despite a softer than expected new home sales report. The Federal Open Market Committee may not make policy changes for July, but more details could likely emerge on the tapering discussions that started in June. The Fed aside, investors will also get a first look at 2nd quarter US GDP which is expected to show the peak of post-pandemic recovery. Expectations have been trimmed back in recent weeks; but growth is still expected to be strong at 8.6 per cent annualised. Meanwhile, later this week, figures on personal income and spending are due this week, which include the Fed’s favourite measure of inflation, the core personal consumer expenditure price index. Across the Atlantic, the euro zone is to release a slew of data, including reports on inflation, GDP and unemployment,” said Sriram Iyer, senior research analyst at Reliance Securities.
“International spot gold and silver prices have started flat this Tuesday morning in Asian trade. Technically, LBMA Gold could bounce back from $1790 level and another trade above $1800 level could push prices up to $1811-$1817 levels. Support is at $1790-$1780 levels. LBMA Silver could trade within the range of $24.70-$25.50 levels,” Iyer added.
“Domestic gold and silver prices could start flat this Tuesday morning, tracking overseas prices. On the domestic front, MCX Gold August holds a support near Rs 47,300-47,100 levels. Resistance is at Rs 47,700-47,900 levels. MCX Silver September holds resistance near Rs 67,300-68,000 levels. Support is at Rs 66,700-65,900 levels,” he added.