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Gold Price Today: Gold Futures Trade Marginally Lower On Global Cues, Silver Falls

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

Gold Price In India: Gold futures continued traded marginally lower on Friday, October 1, as the yellow metal mirrored global trends and remained above the Rs 46,000 level, after prices went higher yesterday. On the Multi Commodity Exchange (MCX), gold futures due for an October 5 delivery, were last seen trading lower by Rs 143 or 0.31 per cent – at Rs 46,180, compared to their previous close of Rs 46,323. Silver futures due for a December 3 delivery were last down 0.39 per cent at Rs 59,387 against a previous close of Rs 59,617.
 

Foreign exchange rates:

On Friday, the rupee declined 12 paise to 74.35 against the dollar in opening trade tracking a strong American currency in the overseas market and a muted trend in domestic equities. Gold is a hedge against inflation and inches higher against a weaker greenback, according to experts.

Gold rates appreciate in rupee terms, if the rupee falls against the US dollar. The US Federal Reserve meeting indicated a hike in interest rates sooner than expected which pushed the dollar to a multi-month high. 

What analysts say:

Mr Amit Pabari, MC, CR Forex:

”The US dollar index continued its bullish momentum for the third straight day to quote near the 94.40 mark-its highest level over a year.

On the domestic front, Indian equities have been an outperformer for the current year amid *stable economic data, under-control inflation, and higher vaccination drive.

The RBI’s intervention in the forex market is likely to remain low as they will check the volatility along with the spot/forward rates.”

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

”COMEX gold trades marginally lower near $1755/oz after a sharp two per cent gain yesterday. Gold remains pressurized by firmer US dollar, Fed’s monetary tightening expectations and weaker investor interest.

However, supporting price is global growth worries amid mixed economic data, rising inflation concerns amid higher inflationary pressure and increasing concerns about Chinese economy. Weakness in equities has also increased gold’s appeal as an alternative asset.

Gold has bounced back from lows however a sustained rise is difficult with the US dollar still holding on to its gain.”
 

Trading Strategy

Sandeep Matta, Founder – TRADEIT Investment Advisor:

”The precious metal has witnessed sharp short coving and bargain hunters stepped into buying the counter post Federal Reserve Chairman mentioned that the U.S. is still far from full employment.

Falling equity market and depreciating dollar may help gold prices to gain further from here onwards however trend is still sell on rise and long-term position should be avoided. 

Key level for GOLD AUG Contract – 46312; Buy Zone Above – 46325 for the target of 46700-47000; and sell zone below – 46300 for the target of 46100-45900.”


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