Gold Price Today: Yellow metal tumbles Rs 7,900/10 gms from peak. Right time to buy?

Amid the cooling off of safe haven buying in the precious metals, Gold June futures contracts at MCX have fallen significantly by Rs 7,900 from their high of Rs 99,358/10 grams. In Thursday’s session, the same touched an intraday low of Rs 91,461/10 grams, falling by Rs 804 or 0.97%.

Meanwhile, silver July futures also mirrored a similar sentiment as they were trading 1.06% lower, or down by Rs 1,011 at Rs 94,455/kg.

On Wednesday, gold and silver settled on a weak note in the domestic and international markets. Gold June futures contract settled at Rs 92,265 per 10 grams with a loss of 1.48% and silver July futures contract settled at Rs 95,466 per kilogram with a loss of 1.34%.

Gold and silver prices were unable to hold their previous session’s gains and plunged again amid easing safe-haven demand due to US-China trade negotiations and major risk aversion in the global financial markets.

The U.S. and China trade negotiations changed bullion markets’ sentiments, and traders and investors are unwinding their long positions and booking profits.

“Gold and silver prices also plunged amid easing U.S. CPI inflation in April month and faded chances of Fed rate cuts in June policy meetings,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.The U.S. 10-year bond yields also surged and crossed 4.50% levels, and also pushed gold and silver prices lower. However, weakness in the dollar index and uncertainty over long-term trade deals between the U.S. and other nations could support metal prices at lower levels.Today, the US Dollar Index, DXY, was hovering near the 100.82 mark, falling 0.22 or 0.22%.

“ We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the key global economic data; gold prices could hold its key support level of $3,140 per troy ounce and silver prices could also hold $31.40 per troy ounce levels,” Jain added.

How to trade gold?

Manoj Kumar Jain noted the following ranges for gold and silver:

• Gold has support at Rs 91,770-91,360 and resistance at Rs 92,650-93,100
• Silver has support at Rs 94,800-94,200 and resistance at Rs 96,000-96,650.

He suggests staying away from taking fresh positions in precious metals in today’s session ahead of the key global economic data.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 57,632/8 grams while pure gold (24 carat) prices stand at Rs 61,416/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,920/8 grams while pure gold (24 carat) prices stand at Rs 61,760/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 56,904/8 grams while pure gold (24 carat) prices stand at Rs 60,624/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 57,152/8 grams while pure gold (24 carat) prices stand at Rs 60,984/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)